Annual Revenue Run Rate Calculator
Extrapolates current monthly or quarterly revenue to an annualized figure
Revenue earned during the selected period
The time period the revenue covers
Projected yearly revenue based on the current period
Average revenue per day
Estimated average monthly revenue
Frequently Asked Questions
What is annual revenue run rate?
Annual run rate (ARR) extrapolates current revenue to an annual figure. If you earned $50,000 last month, your run rate is $600,000. It gives a quick snapshot of business scale but assumes current performance continues unchanged for 12 months.
When is run rate useful and when is it misleading?
Run rate is useful for fast-growing companies, investor pitches, and quick benchmarking. It is misleading for seasonal businesses (a retailer's December revenue extrapolated annually overstates), one-time revenue spikes, or businesses with declining trends. Always note the basis period.
What is the difference between ARR and MRR?
MRR (Monthly Recurring Revenue) is the predictable revenue earned each month from subscriptions. ARR is MRR multiplied by 12. ARR is preferred for annual contracts and enterprise SaaS. MRR is better for tracking month-to-month growth in subscription businesses.
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