Your Annualized Run Rate is equal to your business’s Monthly Recurring Revenue (MRR) multiplied by 12. It is a helpful metric in that it shows how much revenue your company can expect to make over the next year given it’s current customer base and no customer churn or expansion. Your Annualized Run Rate is effectively a forward-looking projection into your revenue for next 12 months based off of your monthly revenue right now.

Annualized Run Rate = MRR × 12