Fig. 01 · Glossary
Annual Contract Value
Also known as ACV
Definition
Annual Contract Value, or ACV, normalizes a contract into one year of recurring value. It helps compare customers, segments, sales efficiency, and retention quality without mixing term length, implementation fees, and recurring subscription economics.
ACV is useful only when the company defines what is included. Mixing implementation fees, usage fees, and recurring subscription value creates a metric that sales can celebrate but finance cannot underwrite.
In board reporting, ACV should reconcile cleanly to ARR, bookings, and revenue.
Human Renaissance glossary · operator-grade definitions · Research methodology
