An average contract value, or ACV, is the average revenue a company gets per customer. This value is commonly measured for a specific time period. The term most often refers to the annually measured value of subscription-based contracts.

What does ACV mean in business?

ACV (annual contract value) is a key metric that shows you how much an ongoing customer contract is worth by averaging and normalizing its value over one year. You can use ACV to measure the dollar value of all your customer accounts, whether they involve: Monthly subscriptions.

What is total ACV?

All-commodity volume or ACV represents the total annual sales volume of retailers that can be aggregated from individual store-level up to larger geographical sets. This measure is a ratio, and so is typically measured as a percentage (or on a scale from 0 to 100).