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See each year of a ramped contract, not the average
Enter the amount for each year of a multi-year deal. See the total and how far each year sits from the average a single annual figure implies.
Follows the same idea as contract periods in the product: forecast the year you are in, not an average.
Total over the term
$108,000
A single annual figure would say $36,000 every year. Each year actually differs:
| Period | Amount | Against the average |
|---|---|---|
| Year 1 | $30,000 | -$6,000 |
| Year 2 | $36,000 | $0 |
| Year 3 | $42,000 | +$6,000 |
How it works
Understand the result
Ramps are common in multi-year deals
A discounted first year and step-ups after it are a usual way to close a longer term.
Averages are wrong every year
An average is too high in the early years and too low in the later ones, which are the years you budget for.
Questions
Frequently asked questions
How does the product record a ramp?
As contract periods, each with its own amount and discount. Spend uses the period covering today.