Total Contract Value (TCV) is a metric that represents the value of one-time and recurring charges. It does not include usage charges. TCV is a projection of your booking revenue and can be useful when planning expenditure and managing the growth of your business. See Exporting TCV data for analysis for more information.
TCV is the measure of the value a customer has committed to you in contracts or orders. It does not match the total invoice amounts that are billed for charges over the subscription term.
Zuora calculates TCV for every charge segment, and rolled up through the charge, subscription, and account.
Zuora calculates TCV for one-time and recurring rate plan charges.
TCV of one-time charges are calculated based on the term setting:
TCV of recurring charges are calculated based on the term setting:
Follow the formula below to calculate TCV values of recurring charges:
TCV = (Price/Number_of_Days_of_Base_Price) * (Charge_Effective_End_Date - Charge_Effective_Start_Date)
For example: A recurring rate plan
TCV = ($140/7)*19 = $380
TCV of a recurring charge equals to the Monthly Recurring Revenue (MRR) multiplied by the number of months that the charge is effective.
Follow the formula below to calculate TCV values of recurring charges. Note that the TCV value may include proration if the charge period includes a partial month at the end. Zuora uses the actual number of days in the month for proration.
Example 1: A recurring rate plan with full month period
Charge effective period: 2 months (= 03/01 - 01/01)
TCV = MRR * 2 = $200
Example 2: A recurring rate plan with partial month period
Charge effective period: 2.4516129032258065 months (= full months+partial months=2+(15-1)/31)
TCV = MRR * 2.4516129032258065 = $245.16129032258065
Every one-time charge and recurring charge in a subscription has an associated TCV value:
The TCV value of an account is the sum of TCV values of all its subscriptions that are not in draft status.
TCV are automatically recalculated if amendments are made to the charge during its life cycle. If an amendment to a recurring charge is made then the charge is split into sections defined by effective start date and effective end date. Each section has a different TCV. For example, if a customer upgrades to a more expensive product partway through the subscription, the TCVs of the modified recurring charge, the subscription, and the customer increase.
TCV values are automatically calculated by the system and displayed in the Zuora UI, REST API, and SOAP API.
In the Zuora UI, you can find TCV values for individual charges in a subscription in the following way:
For more information on how these TCV values are comprised, hover your mouse over the green icon in the history column of the table. A popup window will appear showing the MRR and TCV for each section of the charge.
In the Zuora SOAP API, use the TCV field on the RatePlanCharge object.
In the Zuora UI, navigate to Customers > Customer Accounts in the left-hand navigation section, and select a customer. In the detailed view that appears, scroll to the Subscriptions & Amendments section, and view the Total TCV value in the Subscriptions-Owned tab.