Customer A
Customer A agrees to a $1000 / year, 1 year agreement, and pays monthly.
Metrics calculated for Customer A Only:
- ARR = $1000
- ACV = $1000
Customer B
Customer B agrees to a $750 / year, 2 year agreement, and pays yearly.
Metrics calculated for Customer B Only:
- ARR = $750
- ACV = $750
Customer C
Customer C agrees to a $500 / year, 3 year agreement, and pays yearly.
Metrics calculated for Customer C Only:
- ARR = $500
- ACV = $500
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Metrics calculated with all three customers A, B & C combined:
- ARR = $2,250
- ACV =
- Year 1 = $750
- Year 2 = $625
- Year 3 = $500
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Here are the calculations broken down:
- ARR: $1000 + $750 + $500 = $2,250
- ACV:
- Year 1: $1000 + $750 + $500 / 3 = $750
- Year 2: $750 + $500 / 2 = $625
- Year 3: $500 / 1 = $500