Free ForeverNo SignupARR ProjectionUpdated 2026

Run Rate Revenue Calculator

Annualise any partial-period revenue to get your current run rate — the number investors use to benchmark your scale.

Run rate revenue is what your annual revenue would be if current performance continued for a full year. If you generated $250,000 in revenue in Q1, your run rate is $1,000,000 ARR. Run rate is most useful early in a fiscal year or after a period of rapid growth when historical full-year figures understate current scale.

Revenue in Period

Actual revenue collected during the measurement period

Period Length

The time period your revenue figure covers

Custom Period (days)Optional — use with Custom period above

Number of days your revenue figure covers (if Custom is selected above)

days

The Formula

Annual Run Rate = (Revenue ÷ Days in Period) × 365

In plain English

Divide revenue by the number of days in the period to get daily revenue. Multiply by 365 to get annual run rate, or by 30 for monthly run rate.

Worked Example

Q1 revenue: $250,000 ÷ 91 days = $2,747/day. ARR = $2,747 × 365 = $1,002,747.

Run Rate vs ARR — What's the Difference?

ARR (Annual Recurring Revenue) = current MRR × 12 — it uses only contracted recurring subscription revenue. Run rate = actual revenue in a period × annualisation factor — it includes all revenue types and is based on actual cash collected.

For a pure SaaS business with no one-time revenue, ARR and run rate are often nearly identical. For businesses with significant services, usage-based, or one-time revenue, run rate will differ from ARR. Always clarify which metric you're reporting.

ARR Run Rate Milestones (2026)

Run Rate	Stage	Typical Round	Investor Focus
< $500K	Pre-PMF	Pre-seed/Seed	Retention + growth
$500K–$2M	Early	Seed/Series A	MoM growth rate
$2M–$10M	Growth	Series A/B	CAC payback, NRR
$10M–$50M	Scale	Series B/C	Efficiency + margin
$50M+	Late-stage	Series C+/IPO	Rule of 40, path to P&L

Source: SaaStr Annual Data 2025 · Bessemer Cloud Index 2026

Common Mistakes

⚠️

Annualising a non-representative period

Annualising a single great month (e.g. December with holiday sales) produces an inflated run rate. Use at least a quarter's data to smooth one-time spikes. Always note the period when presenting run rate.

⚠️

Including non-recurring revenue in run rate

A large one-time implementation fee will inflate monthly run rate dramatically. Separate recurring from non-recurring revenue before annualising, and present both clearly.

⚠️

Confusing run rate with forward guidance

Run rate assumes the current period rate holds unchanged. It's a snapshot of current scale, not a forecast. Growth, churn, seasonality, and pipeline all affect what actual revenue will be 12 months from now.

Frequently Asked Questions

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