Learn about the Revenue Type setting in SaaSGrid.
Aditya
Last updated: 12 May 2025
Contracted ARR represents the ARR booked based on signed contracts. Contracted ARR (or contracted ARR or contracted MRR) is used to represent the ARR from all signed contracts, and thus represents the highest possible live ARR.
Generally, the contracted date (or close date) is before the start date (or live date), and SaaSGrid will appropriately toggle between the contracted date or start date per the setting selected. Here, the contracted start date is set to equal the close date of the contract.
Contracted ARR can change dates for renewal contracts depending on date overlap and expansion or contraction. SaaSGrid reflects the most accurate contracted ARR for each period. Contracted ARR can be larger than Live ARR for a particular period, but will never be larger than the largest Live ARR across all periods.
In SaaSGrid, Contracted ARR will only overlap between two contracts if the Live ARR for the two contracts also overlaps. While the contracted start date for a contract is usually set to the close date of the contract, this does not always hold for cases of sequential contracts, these examples are outlined later in the article. In the case of gaps between sequential contracts, SaaSGrid adjusts dates to accurately represent the maximum possible Live ARR in a given period based on signed contracts.
SaaSGrid can adjust dates for consecutive contracts with gaps to show consistent contracted ARR. To accurately represent the maximum Live ARR possible, SaaSGrid uses a specific date logic depending on if a contract expanded or contracted relative to the preceding contract.
For contracted expansion, SaaSGrid will recognize the expansion beginning on the close date of the expansion. For renewals with expansion, the contracted start date will be set to the close date of the renewal, and the end date of the preceding contract is moved up to one day before the close date of the renewal.
For contracted contraction, SaaSGrid will recognize the contraction beginning the day after the end date of the preceding contract. For renewals with contraction, the contracted start date will be set to the day after the end date of the preceding contract. The end date of the preceding contract is not changed.
If a contract has a start date that overlaps with the end date of a preceding contract, the contracted start date of the contract is set to equal the close date. Since this contract overlaps during the service term for Live ARR, the contract can thus overlap in Contracted ARR.
If a close date occurs after the start date for a particular contract, SaaSGrid will use the close date of the contract as the contracted start date.
