2min chapter

Prime Venture Partners Podcast cover image

Demystifying Startup Math: A Guide to TAM, Metrics, and Business Growth

Prime Venture Partners Podcast

CHAPTER

How to Calculate Your Annual Contract Value

For a SaaS company, the ACV is the way you look at it. And annual contract value presumes first and foremost is that the contract is annual - which might or might not be the case. Sometimes for certain class of B2B companies, right, could be on a mid-market or enterprise. There is a one-time setup fee or an onboarding fee or a services fee or whatever. So certainly when we are looking at it and again, everything is aggregated and blended into one whole thing saying we are $50,000 ACV. But when you double click on it, you're like, well, $15,000 is onboarding and services

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