# Run-Rate

Current performance annualized — a recent period projected forward as if it were the full-year steady state.

Run-rate is current performance annualized: taking a recent period — a strong month or quarter — and extrapolating it across a full year, such as multiplying a month's revenue by twelve. It is used to express what current momentum implies for annual performance.

The risk in run-rate is presenting a favorable recent period as steady state. Annualizing a peak ignores seasonality, one-off events, and the durability of the recent result, and it can flatter figures that will not repeat. A run-rate is a useful shorthand only when the base period is genuinely representative of ongoing performance.

### Commonly confused

Steady-state performance. Presenting a favorable run-rate as steady state ignores seasonality and one-offs.

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[View this page on the website](https://getconductor.com/glossary/run-rate) · Last updated: 2026-08-04