Total contract value (TCV) is the full monetary value of a customer contract over its entire duration, including recurring revenue, one-off fees, and any predictable upsell components. It provides a comprehensive view of the financial impact of a deal beyond simple monthly or annual numbers.
TCV helps forecast long-term revenue and understand the true value of new opportunities. It also supports comparisons between deals of different lengths or structures, giving sales teams clearer insight into prioritisation and pipeline management.