Committed ARR (cARR) represents the portion of ARR that is locked in through signed contracts and is therefore highly predictable. It excludes month-to-month customers or revenue not yet under contract.

Example: A SaaS company has $5M in total ARR, but $4.2M is backed by annual or multi-year contracts. The committed ARR is $4.2M, giving the finance team high confidence in that portion of the revenue forecast.