Metrics
CARR (Committed / Contracted ARR)
Quick definition
Live ARR plus signed contracts that have not started or are still ramping, a fuller view of committed recurring revenue.
CARR (Committed or Contracted Annual Recurring Revenue) is ARR plus the recurring value of deals that are signed but not yet live, including contracts still ramping toward full price. It captures momentum that live ARR misses, especially when onboarding or implementation delays the start of billing. Count only signed contracts: pilots, verbal agreements, and letters of intent are not committed. The gap between CARR and ARR shows how much growth is already under contract, which investors and lenders read as a sign of durable, visible revenue.
Related metrics terms
ARR (Annual Recurring Revenue)
Annualized value of your subscription revenue at a point in time.
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Net Revenue Retention (NRR)
Revenue from your existing customer base 12 months later, including expansion and churn.
Gross Revenue Retention (GRR)
NRR without upsell: what you keep before expansion.
See this in action
Insights and tools where CARR (Committed / Contracted ARR) shows up.
Frequently asked questions
- What is CARR (Committed / Contracted ARR)?
- CARR (Committed or Contracted Annual Recurring Revenue) is ARR plus the recurring value of deals that are signed but not yet live, including contracts still ramping toward full price. It captures momentum that live ARR misses, especially when onboarding or implementation delays the start of billing. Count only signed contracts: pilots, verbal agreements, and letters of intent are not committed. The gap between CARR and ARR shows how much growth is already under contract, which investors and lenders read as a sign of durable, visible revenue.
- Why is CARR (Committed / Contracted ARR) important for startups?
- CARR (Committed / Contracted ARR) is a metrics concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does CARR (Committed / Contracted ARR) belong to?
- CARR (Committed / Contracted ARR) is a Metrics term in the StartupCFO finance glossary — alongside other metrics concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about CARR (Committed / Contracted ARR)?
- Beyond this definition, see the related metrics terms below, or explore StartupCFO's insights and tools that put CARR (Committed / Contracted ARR) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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