Enter the monthly recurring revenue, the contract term (months), and the contract fees to determine the total contract value (TCV)

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## TCV Formula

The following formula is used to calculate a total contract value.

TCV = MRR * CL + CF

- Where TCV is the total contract value ($)
- MRR is the monthly recurring revenue from the contract ($/month)
- CL is the contract length (months)
- CF is additional contract fees ($)

To calculate the total contract value, multiply the monthly recurring revenue by the contract length, then add additional contract fees.

## TCV Definition

**What is a total contract value? **

A total contract value is defined as the monthly recurring revenue multiplied by the contract length plus any additional contract fees. It describes the total value of a contract signed by two companies.

## Example Problem

How to calculate total contract value?

**First, determine the total monthly recurring revenue for the contract.**For this example, the contract is worth a total of $5,000.00 per month.

**Next, determine the length of the contract in months.**In this case, the originally planned time is for the contract to run 12 months.

**Next, determine any additional contract fees.**In this example, there is $5,000.00 for completing the full length of the contract.

**Finally, calculate the total contract value using the formula.**Using the formula above, the TCV is calculated to be:

TCV = MRR * CL + CF

TCV = $5,000 * 12 + $5,000

TCV = $65,000.00