Month Over Month Formula:
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Month Over Month (MoM) calculation measures the percentage change between two consecutive months. It's commonly used in business and finance to track growth or decline in metrics like revenue, users, or other KPIs.
The calculator uses the Month Over Month formula:
Where:
Explanation: The formula calculates the relative change between two consecutive months, expressed as a percentage.
Details: MoM calculations help identify trends, measure growth rates, and compare performance across different time periods. They're essential for business planning and performance analysis.
Tips: Enter the current month's value and the previous month's value. The calculator will compute the percentage change between them.
Q1: What does a positive MoM percentage mean?
A: A positive percentage indicates growth from the previous month, while a negative percentage indicates decline.
Q2: How is MoM different from YoY?
A: MoM compares consecutive months, while Year-over-Year (YoY) compares the same month in different years to account for seasonality.
Q3: When is MoM most useful?
A: MoM is most useful for tracking short-term trends and recent performance changes in rapidly evolving metrics.
Q4: What are limitations of MoM?
A: MoM can be volatile and affected by seasonality. It's often best used in conjunction with other metrics like YoY.
Q5: How should I interpret a MoM change?
A: Context matters. Compare the MoM change to historical patterns, industry benchmarks, and your expectations.