Annual Contract Value Calculator

Annual contract value, or ACV, tells you how much a single customer contract is worth per year once you smooth a multi year deal across its full term. This calculator takes the total contract value you have signed and the length of the agreement in years, then divides one by the other to give a clean yearly figure you can compare across customers. It is one of the core metrics for any New Zealand SaaS or subscription business, because raw total contract value can be misleading when some deals run for one year and others run for three or five. Sales leaders use ACV to weight pipeline and set quotas, finance teams use it to model recurring revenue, and founders use it to track how the average deal size is moving over time. To use the tool, enter the total contract value in dollars and the term in years, and the calculator returns the annual contract value plus the implied monthly figure so you can sense check it against your billing. A few good practice tips will keep your numbers honest. First, exclude one off setup or professional services fees from total contract value if you only want the recurring portion, because those fees inflate ACV in the first year and distort comparisons. Second, keep the term consistent, so a 36 month deal is entered as 3 years rather than mixing months and years across your records. Third, track ACV alongside customer count and churn, since a rising ACV with falling logos can hide a shrinking base. Used this way, ACV becomes a reliable lens on deal quality and the health of your recurring revenue.

ACV = total contract value / term in years. Estimate only, not financial or tax advice.