Month-Over-Month Calculator

Month-over-month (MoM) analysis tracks the change in a specific metric between two consecutive months, expressed as a percentage. The standard formula is: MoM Percentage = ((Month 2 - Month 1) / Month 1) * 100. Additionally, when looking at multi-month horizons, the Compound Monthly Growth Rate (CMGR) formula is used: CMGR = (Measurement in Last Month / Measurement in First Month)^(1 / Duration) - 1. This provides a smoothed monthly growth rate over your specified timeframe.

Imagine your software startup generated $50,000 in monthly recurring revenue in January (Month 1), and $58,000 in February (Month 2). To find the MoM percentage increase, subtract Month 1 from Month 2 ($58,000 - $50,000 = $8,000), divide by Month 1 ($8,000 / $50,000 = 0.16), and multiply by 100 to get a 16% growth rate. If you also want to measure long-term compounding over a 12-month duration where revenue grew from $50,000 to $200,000, you apply the CMGR formula: (200,000 / 50,000)^(1/12) - 1, yielding approximately 12.25% average monthly growth.

Always ensure you are comparing consistent data sets, such as accounting for seasonality if your business experiences natural fluctuations during specific times of the year. Keep your time durations accurate when calculating CMGR to prevent skewed multi-period results. Finally, pair your percentage growth metrics with absolute value changes to maintain clear context on the scale of your business performance.