Annualize a Year-to-Date Figure (Run-Rate)

Excel Formulas › Business

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Three months in, what will the full year look like? A run-rate projects year-to-date results to a full year — a quick pace check, as long as you remember it assumes the rest of the year matches.


Quick formula: for YTD total B1 and months elapsed B2:
=B1 / B2 * 12
Average monthly result times twelve. Use the day count instead of months for a finer projection.

Functions used (tap for the full reference guide):

The example

$120,000 in the first 4 months.

AB
1ItemValue
2YTD (4 mo)$120,000
3Projected year$360,000

The formula

Project the full year:

=B1 / B2 * 12 // 120,000 / 4 × 12 = 360,000

How it works

Scale the pace to a full year:

  1. Divide the YTD figure by months elapsed for the average monthly run-rate.
  2. Multiply by 12 to annualize.
  3. For day-level precision, use YTD / daysElapsed * 365.
  4. It’s a straight-line projection — accurate only if the remaining months resemble those so far.

Beware seasonality. A run-rate from a strong Q4 will overstate the year; from a slow January, understate it. For seasonal businesses, project remaining months from last year’s pattern instead of a flat run-rate.

Try it: interactive demo

Live demo

Set YTD total and months elapsed.

Projected year

Variations

By days

Finer projection:

=B1 / daysElapsed * 365

Remaining to target

Gap to plan:

=annualTarget - B1/B2*12

Required monthly pace

To still hit target:

=(annualTarget - B1) / (12 - B2)

Pitfalls & errors

Assumes a flat pace. Run-rate ignores seasonality and one-off spikes. Treat it as a rough pace check.

Zero months elapsed. Guard the denominator at the start of the year.

Partial months. Mixing a partial current month into “months elapsed” skews the rate — use the day-based version mid-month.

Practice workbook

📊
Download the free Annualize a Year-to-Date Figure (Run-Rate) practice workbook
A run-rate sheet with the day-based, gap-to-target, and required-pace variants, plus 4 challenges with answers. No sign-up required.

Frequently asked questions

How do I annualize a year-to-date number in Excel?
Divide YTD by months elapsed and multiply by 12: =YTD/monthsElapsed*12. For day precision use =YTD/daysElapsed*365.
What pace do I need to hit my annual target?
Spread the remaining gap over the remaining months: =(annualTarget - YTD)/(12 - monthsElapsed).
Is a run-rate accurate?
Only if the rest of the year matches the pace so far. It ignores seasonality, so adjust for businesses with strong seasonal patterns.

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Function references: SUM