Software Contract Value Calculator — TCV, ACV, ARR & MRR
Quickly calculate the key SaaS and software contract metrics — Total Contract Value (TCV), Annual Contract Value (ACV), Annual Recurring Revenue (ARR), and Monthly Recurring Revenue (MRR). Enter the number of seats, the monthly price per seat, the contract length, any one-time fees, and volume discount to get a complete revenue picture.
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All recurring revenue over the term plus one-time fees
- 1
Effective price per seat
30 × (1 − 10%) = 27List price reduced by the volume discount. - 2
Monthly Recurring Revenue (MRR)
50 × 27 = 1,350 - 3
Total Contract Value (TCV)
1,350 × 24 + 5,000 = 37,400MRR × term in months plus any one-time fees.
How does this calculator work?
TCV = (seats × monthly price × (1 − discount)) × term in months + one-time fees. ACV = TCV ÷ years. ARR = MRR × 12. LTV = ARR ÷ annual churn rate. These four metrics let you compare deals of different sizes and lengths on a level footing and project revenue from a customer relationship.
Formula
How this is calculated
Software and SaaS contracts are typically measured by several recurring-revenue metrics. MRR (Monthly Recurring Revenue) is the normalised monthly revenue from all active seats at the discounted price; ARR simply annualises it. TCV (Total Contract Value) is the full revenue the contract will generate over its lifetime — MRR multiplied by the term in months plus any one-time fees such as setup, onboarding, or professional services. ACV (Annual Contract Value) normalises TCV to a per-year figure, making contracts of different lengths comparable.
Discounts are applied to the per-seat monthly price before any multiplication. For example, a 10% volume discount on $30/seat/month gives an effective price of $27/seat/month. This is important: a 10% discount on a 50-seat two-year deal compounds to a significant TCV reduction — visible in the cumulative-revenue curve below.
LTV (Customer Lifetime Value) models how much revenue a customer generates before churning. Using annual churn rate: LTV = ARR ÷ churn rate. A 5% annual churn rate implies an average customer lifetime of 20 years, giving LTV = ARR × 20. Note that LTV assumes stable seat count and price; in practice, expansion revenue and price changes make LTV a rough projection rather than a contractual commitment.
Frequently asked questions
TCV (Total Contract Value) is the total revenue a specific contract will generate from start to end — recurring revenue over the full term plus one-time fees. ACV (Annual Contract Value) divides TCV by the number of years, normalising contracts of different lengths so you can compare a one-year deal against a three-year deal on an equal basis.
Yes — TCV conventionally includes all revenue from a contract, recurring and non-recurring. ACV, however, typically excludes one-time fees (or amortises them), because it is meant to represent the normalised annual run rate of the contract.
Typical SaaS annual logo-churn rates range from 3–7% for enterprise software to 10–20% for SMB-focused products. Use your actual observed churn if available; otherwise 5–7% is a reasonable benchmark for a healthy B2B SaaS business. LTV is highly sensitive to churn — cutting churn from 10% to 5% doubles LTV.
Also known as
TG we-Calculate Editorial Team. (2026). Software Contract Value Calculator — TCV, ACV, ARR & MRR [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/software-contract-value-calculator
TG we-Calculate Editorial Team. "Software Contract Value Calculator — TCV, ACV, ARR & MRR." TG we-Calculate. 2026. https://we-calculate.com/calculator/software-contract-value-calculator.
TG we-Calculate Editorial Team, "Software Contract Value Calculator — TCV, ACV, ARR & MRR," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/software-contract-value-calculator
@misc{wecalculate_software_contract_value_calculator, title = {Software Contract Value Calculator — TCV, ACV, ARR & MRR}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/software-contract-value-calculator}}, year = {2026}, note = {TG we-Calculate} }
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