Revenue Run Rate

An annualised revenue projection based on current performance, calculated by multiplying a recent period's actual revenue by the number of such periods in a year, used to represent where revenue is now on an annual scale.

Run rate gives a fast snapshot of where a business is trending without waiting for a full year of data. It is particularly useful for early-stage companies and for investor conversations where annual comparisons are needed but only months of data exist.

A founder has been in business for four months and generated £60,000 in revenue. Her revenue run rate is £180,000 per year (£60,000 divided by 4 months, multiplied by 12). She uses this figure when pitching to investors who want to understand her current annual revenue trajectory.