Run Rate Calculator

Calculate Run Rate (RR)



Formula

The formula to calculate the Run Rate (RR) is:

\[ RR = RP \times PPY \]

Where:

What is a Run Rate?

A run rate is defined as the total annual revenue earned by a business. It is typically used when analyzing SaaS (software as a service) businesses to project future revenue based on current performance.

Example Calculation

Consider an example where:

Using the formula to calculate the Run Rate:

\[ RR = 5000 \times 12 = 60000 \text{ dollars per year} \]

This means that the run rate for this example is $60,000 per year.