In episode #293, Ben dives into Contracted Annual Recurring Revenue (CARR)—a once obscure metric that's now becoming a standard in financial dashboards and valuation discussions. Ben explains how CARR differs from ARR, breaks down the formula, and shares how it’s being used in real-world enterprise SaaS settings. He also shares why defining ARR is more complicated than it seems—especially with variable and usage-based revenue models.

What is CARR (Contracted ARR) and how it differs from traditional ARR

Why CARR is becoming more widely used in valuation discussions and financial reporting

The CARR formula

How Ben approaches CARR discussions with CFOs, consultants, and within The SaaS Academy

The evolving complexity of ARR definitions, especially in hybrid subscription/usage models

Blog: How to Define ARR in Subscription & Usage Models

SaaS Academy – Courses & Community

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