Though ACV and ARR both measure revenue on an annual basis, there is one crucial difference between these two revenue metrics: ACV measures a single account; ARR measures all accounts at the same time. For instance, let’s say you have 150 accounts, each with a different number of users, spread across your four pricing tiers. Each account has an ACV, and it’s calculated individually for that account. ARR, however, is the total amount of your annual revenue across all accounts.