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Revenue Run Rate
An annualized projection of revenue based on current performance.
Definition
Revenue run rate is an extrapolation of current revenue performance to project what you would earn over a full year if current trends continued. For a subscription business, run rate equals MRR × 12. It is a simplification — it does not account for growth, churn, or seasonality — but it provides a quick snapshot of scale that is useful for comparisons and early-stage valuations.
Example
If last month's revenue was $125,000, your run rate is $125,000 × 12 = $1.5M ARR.