Omni Calculator logo

Month-Over-Month Calculator

Created by Ewa Lis
Reviewed by Dominik Czernia, PhD, Steven Wooding and Rijk de Wet
Last updated: Sep 13, 2023


The month-over-month calculator is an intelligent tool that can help you find the percentage change between values for two different months.

In this article, we will discuss what a month-over-month calculation is, how to calculate month-over-month change and compounding monthly growth rate, and the possible alternatives to the month-over-month calculation.

What does month-over-month mean?

You can use the month-over-month calculator to calculate the percentage change (increase or decrease) between two values representing two different months.

Read on to discover how to calculate month-over-month percentage change and find examples of the calculations.

Month-over-month (MoM) calculations are typical for numerous business functions, like:

  • Finance — to monitor MoM change in revenues;
  • Marketing — to analyze MoM number of social media followers;
  • Sales — to check MoM number of customers; and
  • Production — to monitor MoM production volume.

Overall, MoM calculations are useful to understand the performance of a company as well as the performance of different departments.

Likewise, month-over-month percentage change is relevant, e.g., for macroeconomic indicators and analyses. If you want to find out more, check our macroeconomic calculators:

However, MoM calculations can also be useful in everyday life, for instance, to calculate the monthly change in household spending or energy usage.

How to use the month-over-month calculator

To use the calculator, follow the below steps:

  1. Enter the value for month 1.
  2. Enter the value for month 2.
  3. The month-over-month calculator will display the percentage change (increase or decrease) between months 1 and 2 values. Percentage increase is displayed as a positive number; percentage decrease is a negative number.

In order to calculate the month-over-month change, we use the following month-over-month formula:

MoM=v2v1v1×100\mathrm{MoM} = \frac{v_2 - v_1}{v_1} \times 100

where:

  • MoM\mathrm{MoM} — month-over-month; and

  • v1v_1 and v2v_2 — values in months 1 and 2, respectively.

However, to receive the desired result using this month-over-month formula, always ensure that the values for months 1 and 2 are not less than 0.

What is compounding monthly growth rate (CMGR)?

Compounding monthly growth rate (CMGR) is the average month-over-month percentage change (increase or decrease) over a longer term, usually 6-18 months.

The formula for calculating CMGR\mathrm{CMGR} is:

CMGR=(v2v1)1T1\footnotesize \mathrm{CMGR} = \left( \frac{v_2}{v_1} \right)^{\frac{1}{T}} - 1

where:

  • v1v_1 and v2v_2 — values in month 1 and month 2, respectively; and

  • TT — period duration between those months.

For example, if the number of social media followers amounted to 100 in January and 200 in June, then T=5T = 5, and the average monthly increase in the number of followers is:

CMGR=(200100)151=14.87%\footnotesize \mathrm{CMGR} = \left( \frac{200}{100} \right) ^ {\frac{1}{5}} - 1 = 14.87\%

This means that every month between January and June, on average, the number of social media followers increased by 14.87%14.87\%.

Alternatives to the month-over-month change

Although a lot can happen in the timespan of one month, bear in mind that this is a relatively short period. Consequently, the MoM change calculations should always be analyzed with a view to understanding factors like seasonality, one-off effects or random fluctuations to provide a complete picture of the company's performance before implementing any action plans.

If you are interested in month-over-month percentage calculators for business analysis, you may also find the below finance calculators useful:

As the period duration increases, such as with quarter-over-quarter (QoQ) or year-over-year (YoY) change, the data becomes more critical as the time horizon offers reliable historical performance. That is why you may find QoQ or YoY change calculations more relevant for business analysis. Click on the Advanced mode button below the calculator to use the QoQ or YoY alternatives.

Ewa Lis
Month-over-month
Value in month 1
Value in month 2
Month-over-month change
%
Compounding monthly growth rate (CMGR)
Value in first month
Value in last month
Time duration
mos
CMGR
%
Check out 55 similar microeconomics calculators 💲
Accounting profitAccrual ratioActual cash value… 52 more
People also viewed…

Black hole collision

The Black Hole Collision Calculator lets you see the effects of a black hole collision, as well as revealing some of the mysteries of black holes, come on in and enjoy!

Dividend

The dividend calculator helps you calculate the return on your stock dividend.

Semi-monthly pay

This tool calculates the semi-monthly payment based on any other period you know.

Sunbathing

Do you always remember to put on sunscreen before going outside? Are you sure that you use enough? The Sunbathing Calculator ☀ will tell you when's the time to go back under an umbrella not to suffer from a sunburn!
Copyright by Omni Calculator sp. z o.o.
Privacy, Cookies & Terms of Service