Kotchman could earn an additional $100,000 in performance bonuses under the deal agreed to last week and announced Monday.
He hit a combined .272 with 14 homers and 74 RBIs last season for the Braves and the Los Angeles Angels.
The first baseman, who turns 26 on Feb. 22, hit only .149 with no homers in his first 22 games after he was acquired by the Braves on July 29 in the trade that sent Mark Teixeira to the Angels.
Kotchman hit .305 with two homers and 15 RBIs in September. He has a .997 career fielding percentage with just eight errors in 357 games.
After making $1.45 million last year, Kotchman had asked for a raise to $3.25 million in arbitration. He had been offered $2,475,000.