Run Rate 

A Run Rate is a financial projection that estimates future performance based on current results, typically by annualizing revenue or profit figures from a shorter period (monthly or quarterly). 

Formula: 

Run Rate = Current Period Revenue or Profit × Number of Periods in a Year    

Run rates are useful for: 

• Fast-growing businesses needing forward-looking metrics. 

• Early-stage startups with limited historical data. 

• Estimating annual performance during interim reporting periods. 

However, run rates should be interpreted cautiously, as they may not account for seasonality, market fluctuations, or one-off events.