Month over Month Calculator

Month over Month

Month over month growth is a metric to analyze the performance on monthly basis. It helps in evaluating whether the company has made any growth or progress in a particular month compared to its previous month. This growth is defined in percentage terms. This month-over-month calculator will help in making this calculation easy.

For analyzing the performance, a comparison can be made between any factors. Such as sales, profit or number of units sold, etc. Not only positive growth but it also measures a reduction in negative factors such as reduction in the number of complaints, sales returns due to defects and much more.

Formula

The formula for calculating month over month growth rate is as follows:

Month over Month Growth = {(Value of the month in comparison – Value of month previous than the month in comparison)/ Value of month previous than the month in comparison}*100

Month over Month Calculator

Calculator

How to Calculate using Calculator?

The month-over-month growth calculator is a handy online tool for quickly calculating the growth of a month in comparison to its previous month. The user has to provide the following details into it:

Value of Month in Comparison

Enter the number of factors for which you want to calculate the growth in comparison to the previous month. For example, if you want to analyze the change in sales returns, enter the amount of sales return of the period for which you want to evaluate the changes.

Value of Month Previous than Month in Comparison

This is the base for comparison as you will compare this growth with the previous period. Enter the value of the previous month. Assuming the same example, enter the figure of sales return of the previous month.

Now, if the sales returns of the company would have decreased in the current month as compared to the previous month, the growth percentage will be negative and vice versa.

Example

Let us take an example for more clarity.

Assume that a company, engaged in providing online content for entertainment purposes, wants to check the percentage growth in the number of subscribers in the month of August as compared to July. The total number of subscribers in the month of July were 6,500 and that in the month of August were 8,720.

Month over Month Growth = {(8,720 – 6,500)/6,500}*100 = 34.15%

Assume that in the month of September, the number of subscriber were 7,730.

Month over Month Growth = {(7,730 – 8,720)/8,720}*100 = -11.35%

Interpretation

This monthly growth is determined in terms of percentage as it is more feasible to analyze and understand the performance rather than one that is in absolute values.

In the example above, the subscriber has increased in the month of August as compared to July while there is a decrease in September from August. This can be clearly seen in the percentage rate. The MoM growth rate is positive in August due to increase while it is negative in September due to decrease.

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Sanjay Borad

Sanjay Bulaki Borad

Sanjay Borad is the founder & CEO of eFinanceManagement. He is passionate about keeping and making things simple and easy. Running this blog since 2009 and trying to explain "Financial Management Concepts in Layman's Terms".

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