Run RateCalculator
Convert your MRR to annual run rate instantly. Project future revenue with different growth scenarios and compare against industry benchmarks.
Calculate Your Run Rate
Enter your current MRR and growth rate
Used for future projections. Leave empty for simple run rate.
Run rate assumes consistent performance. For accurate forecasting, consider seasonality and market trends.
Your Run Rate
Annualized revenue projections
Pro Tip
Run rate is most useful for quick estimates. Track actual ARR for accurate planning.
Run Rate vs ARR
When to Use Run Rate
When to Use Actual ARR
Common Run Rate Mistakes
Ignoring Seasonality
A strong Q4 doesn't mean Q1 will be the same. Account for seasonal patterns.
Forgetting Churn
Run rate assumes zero churn. Factor in expected churn for realistic projections.
One-Time Revenue
Exclude one-time fees, implementation charges, and non-recurring items.
Using Single Month
An exceptional month skews projections. Use 3-month averages for stability.
Conflating with ARR
Run rate is a projection, ARR is contracted value. Don't mix them up.
Overconfidence
Run rate is an estimate, not a guarantee. Always present with context.
Frequently Asked Questions
What is run rate?
Run rate is a financial projection that annualizes your current revenue performance. For SaaS companies, it typically means multiplying current MRR by 12 to estimate what your annual revenue would be if current performance continues.
How is run rate different from ARR?
ARR (Annual Recurring Revenue) is the actual contracted annual value of your subscriptions. Run rate is a projection based on current performance. ARR is backward-looking and accurate; run rate is forward-looking and assumes consistent performance.
When should I use run rate?
Use run rate for quick estimates in investor conversations, board meeting projections, scenario planning, and early-stage companies with limited data. Don't use it for financial reporting or when you have seasonal variations.
Why is run rate sometimes misleading?
Run rate assumes constant performance, ignoring seasonality, churn, and market changes. A strong December doesn't guarantee the same January. Always pair run rate with actual ARR and growth trends for accurate planning.
How do I calculate run rate from quarterly data?
Quarterly Run Rate = Quarterly Revenue × 4. However, this is even less accurate than monthly run rate as it amplifies any seasonality in the quarter you're measuring.
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