The full value of a customer contract across its entire committed term, without normalizing to an annual figure.
Why it matters
TCV gives a more complete picture of a single deal's total worth, particularly for multi-year contracts, but can be misleading if compared directly against ACV-based figures or against deals of different lengths without adjusting for term.
In a sentence
"The deal's TCV looked impressive at $300K, but that was spread across a five-year term — the ACV was actually smaller than several of our one-year deals."
Related terms
- Often confused with: ACV (see above).