ACV
Annual Contract Value
The average or stated yearly value of a customer contract.
Plain English
What one contract is worth per year.
In context
ACV normalizes multi-year contracts to an annual value and may include different components depending on company policy.
Example
“Moving upmarket raised our average ACV.”
When you'll hear this
- sales planning
- business review
- pricing
Common misunderstanding
ACV is contract value and not automatically the same as collected cash or recognized revenue.
Also known as
annual contract value
Commonly used by
Related terms
Updated: 2026-08-25
