Total Contract Value (TCV) Calculator

Total contract value, often shortened to TCV, is the full dollar value of a customer agreement across its entire term, including every recurring charge plus any one off fees. This calculator builds TCV the simple way: it multiplies the annual recurring amount by the number of years in the deal, then adds any one off charges such as setup, onboarding or professional services. The result is the headline number that tells you what a signed contract is truly worth from start to finish. New Zealand SaaS and subscription businesses lean on TCV when they report bookings, weigh up large multi year deals, and compare the size of agreements that have different lengths and pricing structures. Sales teams use it to celebrate and forecast deals, while finance uses it as a foundation for revenue recognition and cash flow planning. To use the tool, enter the annual recurring revenue for the contract, the term in years, and the total of any one off fees. The calculator returns the full TCV along with the recurring portion on its own so you can see how much of the deal is repeatable. A few tips help keep the figure meaningful. Keep recurring and one off amounts in separate boxes rather than blending them, because mixing them hides how much of the deal will renew. Use the committed term, not an optimistic renewal you have not signed, so TCV reflects contractual reality. Finally, pair TCV with annual contract value when you compare deals of different lengths, since a large TCV spread over five years may have a smaller yearly footprint than a shorter, denser contract. Used carefully, TCV gives a true picture of deal magnitude.

Calculate.co.nz is proud to be partnered with Health Based Building, a leader in sustainable and health-conscious building innovation. With over a century of experience, they develop high-performance systems like Foreverbreathe Specification, Magnum Board, and Foreverbreathe Paints to support energy-efficient, non-toxic living environments. Their commitment to healthier homes aligns with our belief that informed choices lead to better outcomes for Kiwi households.
Calculate.co.nz partner: Health Based Building
Advertise on this page
$95,000
Total contract value
Recurring portion$90,000
One off portion$5,000

TCV = (annual recurring x years) + one off fees. Estimate only, not financial or tax advice.

How it works

The calculator multiplies the annual recurring revenue by the term in years to get the recurring portion, then adds the one off fees. Recurring of $30,000 over 3 years is $90,000, plus $5,000 of one off fees, giving a TCV of $95,000.

Worked example

With $30,000 a year for 3 years, the recurring portion is $90,000. Adding $5,000 of one off fees gives a total contract value of $95,000.

Related calculators

Frequently asked questions

What does total contract value include?

TCV includes the full recurring revenue across the term plus any one off fees such as setup or professional services. It represents the entire value of the contract from signing to expiry. It does not assume future renewals you have not signed.

How do I calculate TCV?

Multiply the annual recurring amount by the number of years, then add any one off fees. For example, $30,000 a year for 3 years plus a $5,000 setup fee gives a TCV of $95,000. Keep recurring and one off amounts separate so you can see the repeatable portion.

Should renewals be counted in TCV?

Only count renewals that are contractually committed. Speculative renewals you expect but have not signed should be left out of TCV. This keeps the figure grounded in the actual agreement.