Definition An estimate of annual performance based on results from a shorter period.
Example €100k of revenue this month × 12 gives an annual run rate of €1.2m.
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Choose your role to see what this term means in your work.
Why it matters It gives an early estimate of yearly performance.
Where it is used Sales forecasts, investor updates and growth discussions.
How to calculate it Revenue this month × 12
Worked example €100k of revenue this month × 12 gives an annual run rate of €1.2m.
Definitions vary. The period used, such as one month or one quarter, changes the result a lot. Check how your organisation calculates it.
