The committed value of a contract over its full term, under the organisation’s agreed measurement rules. It shows the size of the whole commitment rather than the annual run rate or the amount currently due.
An example
A two-year subscription at S$60,000 per year plus a committed S$5,000 implementation fee has S$125,000 TCV if both components are included. Annual billing still means the full amount is not necessarily invoiced at signature.
What to check
Separate committed charges from optional expansion. TCV does not describe cash timing or recognised revenue.
In practice
Compare TCV with the length and enforceability of the commitment. Optional expansion and uncommitted renewals should not be quietly added to a headline figure as though the customer had already agreed to buy them.