Revenue Run Rate
Annualize a short period of revenue to a run rate.
About Revenue Run Rate
The run rate converts revenue from a partial month into an assumed full-year pace by averaging the period and multiplying by twelve. Investors and lenders quote run rates constantly, but a short high-growth period overstates the number because it ignores seasonality and slowdowns.
Formula
Revenue Run Rate
Annual run rate = (revenue / months) x 12
- run rate
- Revenue extrapolated as if the recent pace holds all year
Worked example
With the default values below, Revenue Run Rate returns Monthly Average of $12,500.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Current period revenueminimum 0
- 25,000
- Period in monthsminimum 1
- 2
Results
- Monthly Average
- $12,500.00
- Annual Run Rate
- $150,000.00
Step by step
- 1Values used
- 2Revenue Run Rate
- 3Monthly Average= 12,500.00
- 4Annual Run Rate= 150,000.00
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Revenue Run Rate calculated?
Annual run rate = (revenue / months) x 12 The run rate converts revenue from a partial month into an assumed full-year pace by averaging the period and multiplying by twelve.
Why does Revenue Run Rate matter?
Investors and lenders quote run rates constantly, but a short high-growth period overstates the number because it ignores seasonality and slowdowns.
What values do I need to enter?
This calculator takes 2 inputs: Current period revenue, Period in months. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.