What Is Revenue Run Rate?
An annualized projection of current revenue assuming no change in performance.
An annualized projection of current revenue assuming no change in performance.
Revenue run rate is an annualized estimate of future revenue based on current monthly or quarterly revenue. For SaaS companies, it's typically calculated as the current month's MRR multiplied by 12.
Run rate is useful for quick projections and comparisons, but it assumes no growth, no churn change, and no seasonal effects — which rarely holds true. It should be used directionally, not as a precise forecast.
Run rate is commonly used in fundraising conversations when a company's most recent months are substantially different from earlier months, making annual totals less representative.
Formula
Revenue Run Rate = Current Monthly Revenue × 12
Is your pricing page leaking upgrades?
Personalized report, 7-day refund. The $19 is credited toward the $299 Pricing Decision + Rewrite.
→ Get your Free Instant Pricing Page Score
Explore SaaSPriceLab
- Pricing calculators
- SaaS metrics calculators
- Churn & retention calculators
- Startup financial tools
- Founder decision tools
- Methodology & assumptions
- Free Instant Pricing Page Score
- Full sitemap
Is your pricing page leaking upgrades?
Personalized report, 7-day refund. The $19 is credited toward the $299 Pricing Decision + Rewrite.