Learn how to calculate ARR, ACV and TCV

ARR

Focuses only on recurring subscription revenue, making it more relevant for tracking predictable revenue growth.

1. For One time products won’t be calculated
2. For Recurring products (Duration in months)

ACV

Includes prorated one-time fees, reflecting the full annualized contract value

1. For One time products

2. For Recurring products (Duration in months)

TCV

The total revenue generated from a contract over its entire duration, including recurring charges and one-time fees.

1. For Recurring and One time products

To calculate the totals and sync it to the the CRM

1. Go to Output Document Section → Document Parameters
2. Add Parameter for each of the calculations
    

To only present the totals without syncing it to the CRM

1. Go to Output Document Section → Proposal Summary Preview Templates
2. In the “Select Parameter to add” search for the parameters (You don’t have to create them as a doc parameter first because the system calculates totals OOTB)

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