How do I calculate ACV (Average Contract Value)?

Use the formula(s) on this page. Keep inputs consistent by period and basis.

What are good benchmarks?

Benchmarks vary by model and stage. See Benchmarks on this page for ranges.

Inconsistent definitions/time windows; wrong basis (revenue vs gross profit).

Pitchkit

Back to Glossary

GLOSSARY

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

Back to Glossary

GLOSSARY

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.

ACV (Average Contract Value)

Usage

Benchmarks

Worked example

Common pitfalls

How to show in your deck

ACV (Average Contract Value)

Usage

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Deck snippet

Formulas

FAQs

Related terms

Usage

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Usage

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Deck snippet

Formulas

FAQs

How do I calculate ACV?

What are good benchmarks?

Common pitfalls?

Related terms