Monthly Contract Value (MCV) is the average monthly revenue generated per customer contract. MCV helps businesses understand the monthly value of customer contracts and is useful for tracking revenue growth and comparing performance across different time periods.

MCV is calculated by dividing the total contract value by the number of months in the contract.

\[\text{MCV} = \frac{\text{Total Contract Value}}{\text{Number of Months in Contract}}\]

1. Basic Example: A customer signs a 12-month contract worth $12,000. The MCV is:

\begin{align}MCV &= \frac{12,000}{12} \cr&= 1,000 \text{ USD}\end{align}

2. Variable Contract Example: A company signs 6-month contracts, each worth $6,000. The MCV for each contract is:

\begin{align}MCV &= \frac{6,000}{6} \cr&= 1,000 \text{ USD}\end{align}