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How to Calculate ARR, ACV, and TCV

  • June 25, 2025
  • 3 replies
  • 49 views
DealHub Education
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This section outlines how DealHub calculates key revenue metrics—ARR (Annual Recurring Revenue), ACV (Annual Contract Value), and TCV (Total Contract Value)—based on product types and durations. These metrics are available out-of-the-box and can be used for display purposes or synced to your CRM.

 

ARR

ARR focuses solely on predictable, recurring subscription revenue and excludes one-time product charges.

  • Applicable to: Recurring products only
  • Calculation basis: Product duration (in months)
  • Not applicable to: One-time products

 

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ACV

ACV includes prorated one-time fees, reflecting the full annualized value of a contract.

Applicable to:

One-time products (prorated annually)

 

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Recurring products (based on contract duration in months)

 

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TCV

TCV reflects the total revenue expected over the full duration of the contract, inclusive of both recurring and one-time charges.

  • Applicable to: All product types—recurring and one-time

  • Calculation basis: Total revenue across the contract’s lifetime
     

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Where to Configure

To calculate totals and sync them with the CRM:

  1. Navigate to: Output Document → Document Parameters

  2. Add a parameter for each metric (ARR, ACV, TCV)

  3. These parameters will be calculated and synced with the CRM as part of the document generation process.
     

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To display totals without syncing to the CRM:

  1. Navigate to: Output Document → Proposal Summary Preview Templates

  2. In the “Select Parameter to Add” dropdown, search for the relevant metrics (ARR, ACV, TCV)

    • These parameters do not need to be defined in Document Parameters beforehand; the system calculates them OOTB.
       

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Notes on Sales Mode

  • These calculations are available in Sales Mode and respect the product configuration and duration logic defined in the quote.
     

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    eran.gross

    3 replies

    A
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    • Ay-Ay-Ron
    • Employee
    • June 30, 2025

    How would you do this with Multi-System?

    N
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    • Nroimi
    • Employee
    • November 9, 2025

    TIP :
    Calculating Multi-Year ARR: (MULTI SYSTEM)
    1. Add 3 hidden questions to your playbook (inside the multi-system). The answers should be
    a numeric answer that defaults to 0.
     



    2. In the first question (Multiplier 1) - add a conditional answer with the following logic:
    a. If [General.SystemOrdinal] = 1, then numeric answer should default to 1

    3. In the second question (Multiplier 2) - add a conditional answer with the following logic:
    a. If [General.SystemOrdinal] = 2, then numeric answer should default to 1

    4. In the third question (Multiplier 3) - add a conditional answer with the following logic:
    a. If [General.SystemOrdinal] = 3, then numeric answer should default to 1

    5. Go into your product settings, and select proposal attributes. Add the following 3 proposal
    attributes:
     



    6. Go into each of your products and add in the following formulas next to each of the newly
    created proposal attributes (NOTE: This formula assumes that your duration is in
    months):
     


    7. Go into your Document Parameters section in Output documents and create the following 3
    parameters:


    8. You will now see the ARR for each year added to your product summary in Sales Mode and
    you can also use the custom parameters you created in other places, such as a document (if
    needed).
    9. You can also push these values back into Salesforce via the proposal attribute. If they need
    this value in the opportunity and not as a quote line item, you can use the sync opportunity
    - quote line items package and link the values there.


     

    N
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    • Nroimi
    • Employee
    • November 9, 2025

     

    💡 Tip: Calculate TCV with 3% Yearly Growth (Including One-Time Products)

    Want to display a Total Contract Value (TCV) that grows by 3% every year, while also including your one-time fees like setup or onboarding?
    Here’s a ready-to-use formula you can drop right into your DealHub field 👇

     

    Math.round([Recurring_Revenue] * ((Math.pow(1.03, [Contract_Years]) - 1) / 0.03) + [One_Time_Products])

    🧠 How it works

    • [Recurring_Revenue] → your base recurring ARR (excluding implementation/setup)

    • [Contract_Years] → total contract length in years (e.g., 3, 5, 7)

    • [One_Time_Products] → total value of one-time products or setup fees

    • 1.03 → represents 3% annual growth (change to 1.05 for 5%, etc.)

    • Math.round() → keeps your result clean and nicely rounded

    ✅ Why this formula rocks

    • Works natively in DealHub formula fields

    • Supports any multi-year contract

    • Perfect for SaaS or subscription models with annual expansion

    • Easy to adapt — just replace the placeholders with your field names

    🚀 Example:
    For a 3-year deal with a $100,000 recurring ARR and $5,000 one-time setup, this formula returns:
    $315,900 total contract value with 3% yearly growth.

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