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Total Contract Value (TCV)

The total revenue expected from a contract over its lifetime.

Acme Inc. signs a contract that includes a $5,000 setup fee and $2,000 per month for 24 months. TCV = $5,000 + ($2,000 x 24) = $53,000.

TCV is calculated by adding all one-time and recurring charges over the life of a contract.

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