Listed below is information on how the MRR, ARR, TCV, and ACV fields in Salesforce are calculated.
Listed below is information on how the MRR, ARR, TCV, and ACV fields in Salesforce are calculated.
The corresponding fields are calculated as explained below.
| MRR Total – The cost of the plan per month. |
| TCV – The total contracted value (activation + MRR for contracted months). The TCV is only calculated if a contract is applied. Otherwise, the TCV is $0. |
| ACV – The annual contracted value (activation + MRR for 12 months). The ACV is only calculated if a contract is applied. Otherwise, the ACV is $0. |
| ARR – The annual cost of the plan. |
Note: If these fields are not visible, you can configure the FieldSet associated with the Account Plan object to display them.
Below is an example plan ("Plan A") and how the MRR, TCV, ACV, and ARR would be calculated.
"Plan A" Details:
Billing Interval: Quarterly
Recurring Cost: $120 p/ quarter
Activation Service: $100
Contract Applied: 6 month
Calculations:
MRR: 120/3 = $40
ARR: $40 x 12 = $480
TCV: 100 + (40 x 6) = $340
ACV: 100 + (40 x 12) = $580
Note: For an annual contract, the TCV, ACV, and ARR will be equal if the plan does not have an activation service. Otherwise, the TCV and ACV will be equal.