Annual contract value (ACV)
Annual contract value (ACV) is the average yearly revenue of a single customer contract, excluding one-time fees. Total contract value (TCV) is the contract's full value across its entire term.
Glossary
Billing & Pricing Glossary
Clear, neutral definitions for the billing, pricing, and revenue terms that come up when you monetize an AI or SaaS product — with examples and how each concept works in practice.
Annual recurring revenue (ARR)
Annual recurring revenue (ARR) is the predictable subscription revenue a company expects over a year, normalized to an annual figure. It counts recurring contracts only, excluding one-time fees and uncommitted usage.
Monthly recurring revenue (MRR)
Monthly recurring revenue (MRR) is the predictable subscription revenue a company earns each month from active recurring plans. It excludes one-time fees and uncommitted usage, and is the monthly view of recurring run-rate.
Net revenue retention (NRR)
Net revenue retention (NRR) is the percentage of recurring revenue retained from existing customers over a period, including expansion and after subtracting downgrades and churn. Above 100 percent means the base grows without new customers.
SaaS churn rate
SaaS churn rate is the percentage of customers or revenue lost over a period. It measures how fast a subscription business loses customers (customer churn) or recurring revenue (revenue churn).
Subscriber churn
Subscriber churn is the number or percentage of subscribers who cancel over a period. It measures customer loss by count, regardless of how much revenue each lost subscriber represented.
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