Understanding Run Rate in Business

Jake owns a garden supply store. his revenue at the end of last month was $12,200.

Based on the information provided, Jake's annual run rate is $146,400.

What is the run rate?

This refers to the general performance of a company based on the profits of a specific period.

How to calculate the run rate?

The general formula for this factor is:

• Revenue in a specific period/number of periods in the year

This means:

12,200 x 12 = 146,400

This means in a year it is expected Jake makes a total of $146,400.