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Tools

Run rate calculator

Turn one day, week, month, or quarter of revenue into a run rate. Then see what the company collects in the next 12 months.

Learn the idea behind this tool

Calculator

Decode a run rate, then stress-test it

Enter the revenue of one period. See the run rate, then see what the company collects in the next 12 months.

One period of revenue is a
Run rate
$6M
$500K × 12
Per month
$500K
Per week
$115.38K
Per day
$16.44K

Stress test: the next 12 months

A run rate assumes that the period repeats for a full year. Remove the one-time revenue and add churn.

20%

Setup fees, consulting, or a launch spike that does not occur again.

−3%

Less than zero: customers leave (churn). More than zero: growth.

ARR, recurring only
$4.8M
Collected in 12 months
$3.96M
Collected ÷ run rate
66%

Revenue each month for the next 12 months

  • Headline: run rate ÷ 12
  • Revenue the company collects

20% of this month was one-time revenue, so only $4.8M of the $6M run rate is ARR. With 3% churn each month, the company collects $3.96M in the next 12 months: 66% of the headline.

A run rate shows speed at one moment. It does not show the money that the company will collect.