Run Rate Calculator

Annualise recent revenue into a run rate and test it against growth.

About Run Rate Calculator

A simple run rate assumes no growth and no seasonality, which makes it a snapshot rather than a forecast. Compounding growth over twelve months produces a substantially higher total than the run rate suggests. Quoting run rate from the best recent month is a well-known way to overstate scale, which is why investors ask for the underlying monthly series.

Formula

Run Rate

Run rate = period revenue ÷ months × 12; growth projection sums a geometric series

run rate: A naive annualisation assuming the current rate continues unchanged
exit month revenue: Revenue in the final projected month, often quoted as exit ARR

Worked example

With the default values below, Run Rate Calculator returns Annual Run Rate of $1,280,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Revenue in the periodminimum 0: 320,000
Length of the periodminimum 0.1 months: 3 months
Monthly growth rateaccepts -20–50 %: 4 %
Seasonality adjustmentaccepts -50–50 %: -5 %

Results

Annual Run Rate: $1,280,000.00
Monthly Average Revenue: $106,666.67
Growth Adjusted Annual Projection: $1,666,862.69
Seasonality Adjusted Run Rate: $1,216,000.00
Projected Revenue in Month Twelve: $170,776.77

Step by step

1Values used
2Run Rate
3Annual Run Rate= 1,280,000.00
4Monthly Average Revenue= 106,666.67
5Growth Adjusted Annual Projection= 1,666,862.69
6Seasonality Adjusted Run Rate= 1,216,000.00
7Projected Revenue in Month Twelve= 170,776.77

Assumptions and limits

The result is derived only from the 4 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 Run Rate calculated?

Run rate = period revenue ÷ months × 12; growth projection sums a geometric series A simple run rate assumes no growth and no seasonality, which makes it a snapshot rather than a forecast. Compounding growth over twelve months produces a substantially higher total than the run rate suggests.

Why does Run Rate matter?

Quoting run rate from the best recent month is a well-known way to overstate scale, which is why investors ask for the underlying monthly series.

What values do I need to enter?

This calculator takes 4 inputs: Revenue in the period, Length of the period, Monthly growth rate, Seasonality adjustment. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.