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Glossary > Contracted Annual Recurring Revenue (CARR)

Contracted Annual Recurring Revenue (CARR)

Contracted Annual Recurring Revenue (CARR) is a financial metric used to measure the amount of revenue that a company is contracted to receive on an annual basis from its recurring revenue streams. It is a forward-looking metric that helps companies and investors to predict future revenue growth.

CARR is typically calculated by multiplying the number of paying customers by the average revenue per customer over a 12-month period.

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Similar Terms:

Annual Recurring Revenue (ARR)
Average Revenue Per User (ARPU)
Committed Monthly Recurring Revenue (CMRR)
Net Revenue Retention (NRR)

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