Run Rate
Categories: Company Management, Metrics
How fast you're running, right? Run 100 meters in 10 seconds and, at that run rate, you run a 1,500 (a mile-ish), and it takes 150 seconds, or about 2 1/2 minutes. And yeah, that'd win the gold.
Sales run rates work the same. Like...Apple is rolling out a new vibrating phone. Its first month, it sells $100 million worth. So you'd say its run rate (you're annualizing, so you might say its annual run rate) is $1.2 billion. We're picking up good vibrations.
![](https://media1.shmoop.com/images/finance-glossary/marathon.jpg)