Total Contract Value (TCV) is the total revenue you expect to receive from a client over the full length of a signed agreement. This includes both:

• Recurring revenue (such as monthly or annual platform fees or service retainers)

• One-time fees (such as onboarding, creative development, or media strategy sessions)

For performance marketers and agencies managing multi-month engagements, TCV offers a realistic, contract-based metric that reflects the full financial impact of a client relationship, rather than just monthly spend.

How to Calculate Total Contract Value

The formula is simple:

TCV = (Monthly Recurring Revenue × Contract Length in Months) + One-Time Fees

Example:

Let’s say a client signs a 12-month contract with:

• $4,000/month in platform and service fees

• $6,000 in upfront onboarding and creative production costs

Then:

TCV = ($4,000 × 12) + $6,000 = $54,000

Any changes in contract duration or monthly value will impact the total, so it’s a metric worth revisiting when pricing tiers, deliverables, or scope shift.