How To Calculate Run Rate?

Run rate = current performance projected over a full period

Formula: Run rate = (Current total / Time elapsed) × Total time in period

For annual run rate: Annual run rate = current monthly value × 12

For monthly run rate: Monthly run rate = current weekly value × 4.33

For weekly run rate: Weekly run rate = current daily value × 7

For daily run rate: Daily run rate = current hourly value × 24

Use the same units for total time and elapsed time

Example: 3 months of sales = 150 units

Annual run rate = (150 / 3) × 12 = 600 units

Example: 10 days of revenue = $5,000

Monthly run rate = (5,000 / 10) × 30 = $15,000

Run rate can also be calculated as average rate × projected period length

Adjust for seasonality, missing data, or unusual spikes when needed

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