Contracted Annual Recurring Revenue is the total ARR locked in through active, signed agreements. It provides a predictable baseline for revenue planning and differs from total ARR if some customers are on flexible or month-to-month terms.

Example: A company with 200 customers, 150 on annual contracts worth $4M and 50 on monthly plans worth $600K, has a contracted ARR of $4M and a total ARR of $4.6M.