ARR Run Rate

It is a quick annual revenue snapshot from what is hitting the bank each month — useful for agencies with retainers.

Formal definition

ARR run rate annualizes recurring or steady monthly cash inflows by multiplying monthly deposits by twelve.

Why it matters

Run rate helps freelancers and agencies gauge whether monthly inflow can support payroll without waiting for year-end books.

Where you see it

  • Agency owner dashboards
  • SaaS and retainer analogies in consulting
  • Cash-flow forecasting templates
  • Venture and lender pitch decks
  • Freelance finance workshops

Worked example

  1. Average monthly deposits: $42,000.
  2. ARR run rate = $42,000 × 12 = $504,000.
  3. Interpretation: Current monthly inflow implies ~$504k annual pace — not guaranteed if clients churn.

How Business metrics calculates it

Current recurring or deposit run-rate annualized (see agency fields).

Where people fool themselves

ARR run-rate from one oversized December invoice is a lie. Retainers and true recurring belong here; project spikes do not.

Run it on your own numbers: the Freelance & Agency calculator.