Explore commonly used personal finance terms.
Annual Contract Value (ACV) represents the total value of a recurring revenue contract within a year, used by subscription-based or service-oriented companies to assess long-term revenue potential. ACV helps businesses evaluate customer value, predict revenue, and support financial planning. For clients, ACV indicates the annual cost of a contract or service. Monitoring ACV over time assists in identifying customer retention and growth opportunities, ensuring strategic resource allocation and revenue forecasting.
