Software Contract Value (SCV)

Finance

Calculate Software Contract Value (SCV/ARR). Formula: SCV = Monthly Recurring Revenue × Months or Annual Recurring Revenue.

Formula

SCV = MRR × Contract Months; ARR = MRR × 12

$50k MRR, 12-month contract

Inputs
  • Monthly Recurring Revenue ($): 50000
  • Contract Period (months): 12

SCV = $600k

Frequently asked questions

SCV vs ARR?
ARR is annualized revenue (always 12 months). SCV varies with actual contract length.