Run Rate
Content
Definition
Run Rate extrapolates financial results into future periods. For startups, it indicates the expected financial performance based on current metrics.
Usage and Context
Run rate estimates future financial performance by projecting current results into the future.
Frequently asked questions
- What is the run rate formula? The run rate is calculated by multiplying the revenue or cost of a period (like a month) by the number of those periods in a year.
- What does run rate mean in forecasting? Run rate is an estimate of a company’s future performance based on its current financial data, projected over a year.
- What is the run rate formula? Run rate estimates future performance based on current financial results.
Benefits
Run rate projects a startup`s future financial performance based on current metrics.
Conclusion
Run rate predicts future performance based on current financial numbers.
