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Contracted ARR (CARR)

Contracted ARR (CARR) is live ARR plus the ARR of signed contracts that start later. Sales-led companies often sign weeks or months before go-live, and CARR shows that committed revenue without overstating today’s run rate.

Formula

Contracted ARR = live ARR + backlog ARR
backlog ARR = ARR of signed contracts with a future start date

Worked example

Illustrative figures. Show the parts, not only the total.

Contracted ARR
LineUSD
Live ARR1,200,000
Signed, starts next month60,000
Signed, starts next quarter90,000
Contracted ARR1,350,000

What belongs in backlog

  • Signed contracts with a start date after today.
  • Signed expansions to existing contracts that take effect later.

Leave out verbal commitments and late-stage pipeline, trials however likely they look, and renewals that are not yet signed.

Show live and backlog separately

Report live ARR and backlog as separate lines with expected start dates. The board can then see how much of contracted ARR goes live next quarter, and whether backlog is growing or being drawn down.

Renewals next to CARR

List contracts ending in the next 90 days, split by whether they renew automatically. An auto-renewing contract past its end date is still revenue, but flag it so someone confirms the renewal.

How Revnewed calculates it

Contracted ARR is live ARR plus signed contracts that start later. Renewals due in the next 90 days are listed and split by auto-renew, and auto-renewing contracts past their end date are flagged as overdue renewals.

Trials appear with the MRR they would add at list price, and never in MRR.

Common mistakes

Pipeline in the backlog
If it is not signed, it is not contracted.
One trend line for two numbers
Charting CARR and ARR as one series hides when backlog goes live, or does not.

Get these numbers from your own contracts

Import a CSV of contracts and Revnewed calculates every metric on this page, month by month, ready to close.

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