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Showing posts with the label Month Growth Rate

How to Calculate Month-over-Month Growth Rate

Month-over-month growth is a key metric for measuring the growth of your business. To calculate Month-over-Month growth, subtract the first month from the second month and then divide that by the last month’s total. Multiply the result by 100 and you’re left with a percentage. The percentage is your Month-over-Month growth rate. The formula for Month-over-Month growth rate is: Percent change = (Month 2 – Month 1) / Month 1 * 100 However, there’s much more to understanding your monthly growth than just extracting the most recent increase. It’s also important to understand the context around the MoM metric so you can use it effectively. For example, knowing how to interpret and present Month-over-Month growth is particularly valuable for raising capital. Investors expect to see growth metrics and projections, and monthly breakdowns are appropriate when your company is very new. In this article, I’ll provide: Every formula needed to calculate Month-over-Month growth. A demonstration...