Revenue run rate calculator
Project a period's revenue into an annualised run rate.
Revenue run rate calculator
Plug in your numbers - it updates as you type.
What is revenue run rate?
A projection of annual revenue based on current performance - taking a recent period and extending it across a full year.
For example, if an agency billed $90,000 last month, its annualised run rate is about $1,080,000. It is a quick way to size the business today, though it assumes the current month is representative.
Why it matters to agencies: run rate gives a fast, current-state read on the size of the business - useful for planning and goal-setting. Its weakness is that it assumes today continues unchanged, so it can mislead if the latest period was unusually strong or weak.
Annual run rate = revenue in a period × number of those periods in a year
E.g. monthly revenue × 12 - best used when the period is representative.
What is revenue run rate?
A projection of annual revenue based on current performance - taking a recent period and extending it across a full year.
How do you calculate run rate?
Take revenue from a recent period and multiply it out to a year - for example, monthly revenue times twelve.
What is the difference between run rate and ARR?
ARR counts only recurring revenue; a revenue run rate can annualise total revenue, including one-off work, so it is broader and rougher.
When is run rate misleading?
When the base period is not representative - a bumper month or a seasonal dip will distort the annualised figure.
Read the full definition: Revenue run rate in the agency glossary
See how Forge builds it: time tracking software for agencies
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