Marketing & Sales Metrics

ACV (Annual Contract Value)

Annualized value of one customer contract — used for measuring deal size in B2B SaaS.

ACV = annualized contract value. For a ₹2,000/month plan = ₹24,000 ACV. For a ₹50,000 multi-year contract = depends on tenure (₹50,000/2 = ₹25,000 ACV for 2-year).

ACV is paired with deal cycle, win rate, and pipeline metrics. Sales velocity formula: (Pipeline × Win Rate × ACV) / Deal Cycle days.

Indian B2B SaaS ACV bands: SMB ₹12,000-50,000. Mid-market ₹50,000-3L. Enterprise ₹3L-50L+. Higher ACV typically requires sales-led GTM; lower ACV often self-serve.

India context

Indian SaaS founders compare their ACV to global benchmarks but should weight by India's lower price points. ₹50,000 ACV in India = roughly $5,000 in US — both are 'mid-market' price points by their respective economies.

Examples

  • A ₹2,000/month customer = ₹24,000 ACV.
  • An enterprise client at ₹50,000/month with 2-year commitment = ₹6L total = ₹3L ACV.

FAQ

What's the difference between ACV and TCV?

ACV = annual. TCV (Total Contract Value) = full contract value across all years. So a 2-year ₹6L contract has ₹3L ACV and ₹6L TCV.

Should I report ACV or MRR?

Both. MRR for operations, ACV for sales-team metrics, ARR for valuation.

How do I increase ACV?

Move upmarket (target larger customers), expansion within accounts (more seats, more modules), bundling. ACV-growth strategy varies by segment.

Related concepts

MRRARRdeal cyclewin rateTCV

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