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Average Contract Length

Average length (in months) of customer contracts, weighted by ARR.

Also known as: Avg Contract Term, Weighted-Avg Duration

Definition

The dollar-weighted average contract duration across the customer base. Longer = more locked revenue + better renewal visibility. Public SaaS reports this when transitioning from annual to multi-year mix. Median enterprise B2B SaaS: 18-30 months. SMB B2B SaaS: 12 months.

Related terms

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See how public B2B SaaS companies disclose this metric, with full historical time series.