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
- Average monthly deposits: $42,000.
- ARR run rate = $42,000 × 12 = $504,000.
- 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.