As such, the calculations for these metrics are as follows: TCV = Monthly recurring revenue x Duration of contract in months + one-time fees. ACV = (Total Contract Value - one-time fees) / Duration of contract in years
Total Contract Value Formula (TCV) Formulaically, the total contract value (TCV) is calculated by multiplying the monthly recurring revenue (MRR) by the term length of the contract, and adding any one-time fees from the contract.