Work out the annual value of a multi-year contract
Enter the total value and the term. Get the annual figure the product would use, or a plain answer when there is not enough to give one.
Calls the product's annual run rate function directly.
Annual figure
$36,000
The total divided by the term in years. A term shorter than a year is not scaled up: the whole total falls inside one year.
How it works
Understand the result
Divide by the term in years
A three-year total over three years gives a third per year. Use contract periods instead when the years differ.
Short terms are not scaled up
A six-month total stays the total. Doubling it would invent spend that was never agreed.
No dates, no figure
Without both dates there is no defensible annual figure. The product records that as a gap rather than guessing.
Questions
Frequently asked questions
Why not assume a one-year term?
Because a wrong assumption produces a confident wrong number. A visible gap is easier to fix.
Guides