This revenue run rate template shows you how to calculate the annualized revenue.
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Revenue Run Rate is an indicator of financial performance that takes a company’s current revenue in a certain period (a week, month, quarter, etc) and converts it to an annual figure get the full-year equivalent. This metric is often used by rapidly growing companies, as data that’s even a few months old can understate the current size of the company. Another term for the same this is the Sales Run Rate.
In general, the run rate uses the current financial information of a company such as present sales and present revenue as a predictor of future performance. It is an extrapolation of current financial performance and assumes that the present financial environment will not change in the future.
Run Rate = Revenue in Period / # of Days in Period x 365
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