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Glossary > Total Contract Value (TCV)
Total Contract Value (TCV)
Total Contract Value (TCV) is the total amount of money that a customer has committed to paying you over the length of an entire contract.
In SaaS and subscription businesses, TCV is typically calculated as follows:
TCV = MRR * Contract Term Length + One-time fees
TCV is an important metric in SaaS because it helps you understand how much your business makes on average from each customer you acquire.
Ready to learn more about CloudBlue?
CloudBlue is a powerful XaaS platform that will help you grow revenue. Here are some resources for more information:
Subscription and Billing Management
Our flexible subscription and billing solution can handle the most complex XaaS business models – and scale recurring revenue.
Partner and Channel Management
Cut through complexity and see more revenue from your channel business as you easily onboard and enable resellers across the globe – at scale.
Vendor and Product Information Management
Centralize all of your vendor and supplier contracts and streamlined product information on one platform.
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