The Annual Contract Value (ACV) is the average one-year value of a customer contract. ACV is used in SaaS businesses that sell one- or multi-year agreements. ACV most often refers to renewable items such as software or services that can be renewed in the next period. Examples of non-renewable items include implementation fees and one-time training fees.
You have a total of 3 customers:
In this example, the company’s average ACV is $12,333.33. [($12,000 for customer 1 + $10,000 for customer 2 + $15,000 for customer 3) ÷ 3 total customers]