Finance Calculator
Revenue Run Rate Calculator
Annualise partial-period revenue to estimate a full-year run rate. Useful for start-ups, growing businesses, and mid-year performance snapshots.
Enter your revenue and period
How is revenue run rate calculated?
Revenue run rate takes the revenue earned over a partial period and scales it up to a full 12-month equivalent. It assumes the same rate of revenue generation continues for the remainder of the year.
Monthly Rate = Revenue for Period ÷ Number of Months
Annual Run Rate = Monthly Rate × 12
Weekly Run Rate = Monthly Rate × 12 ÷ 52
For example, if a business earns £250,000 over 3 months, the monthly rate is £83,333, the annualised run rate is £1,000,000, and the weekly rate is approximately £19,231.
Run rate is a projection, not a forecast. It does not account for seasonality, growth trends, or one-off events.
Assumptions and caveats
- •Run rate assumes the sample period is representative of the full year. Seasonal businesses should exercise caution.
- •One-off or exceptional revenue items in the period will inflate the run rate and should be excluded.
- •A longer sample period generally produces a more reliable annualised estimate.
- •Run rate does not factor in confirmed future contracts, pipeline, or known cancellations.
- •This is a simple linear projection. For compound growth scenarios, use CAGR analysis instead.
Frequently asked questions
A revenue run rate is an annualised estimate of revenue based on a shorter period of actual results. For example, if a business earns £250,000 in a quarter, the annualised run rate is £1,000,000. It projects current performance forward as if it continued at the same pace for a full year.
Run rate is most useful for new businesses without a full year of trading, businesses experiencing recent growth or change, mid-year performance estimates, and investor or lender presentations where an annualised figure provides context. It gives a forward-looking snapshot based on recent activity.
Run rate assumes the period used is representative of the full year. It does not account for seasonality, one-off contracts, cyclical variation, or trends. A strong Q4 in retail, for example, would produce an inflated annual run rate. Always consider whether your sample period is typical.
Lenders may use run rate to estimate annualised revenue for businesses that don't yet have 12 months of trading history, or to gauge recent momentum. However, most lenders prefer audited annual accounts and will scrutinise run rate claims. A run rate based on a very short period carries less weight.
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