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  4. Acv

ACV (Average Contract Value)

Average annual contract value per customer.

Usage

Helpful for enterprise pricing and sales efficiency; pair with sales cycle.

Benchmarks

Self‑serve: <$1k; SMB: $1k–$10k; Mid‑market: $10k–$50k; Enterprise: $50k–$250k+.

Worked example

5 enterprise contracts totaling $600k → ACV = $600k/5 = $120k.

Common pitfalls

Mixing TCV with ACV; including one‑time services; not excluding multi‑year prepayments properly.

How to show in your deck

Sales motion slide: ACV with sales cycle and win rate; add top ICP titles/verticals.

Deck snippet

ACV $120k | 62‑day sales cycle | 28% win rate.

Formulas

ACV (simple)
Total contract value (annualized) / Number of contracts

FAQs

Related

Sales cycleSeeMRRSee