1. What is Month Over Month Change?

Month Over Month (MoM) change is a key metric that measures the growth or decline between two consecutive months. It's commonly used in business and finance to track performance metrics like revenue, users, or other KPIs.

2. How Does the Calculator Work?

The calculator uses the MoM change formula:

Where:

• \( M1 \) — Value in the first month
• \( M2 \) — Value in the second month

Explanation: The formula calculates the percentage difference between two consecutive months. A positive value indicates growth, while a negative value indicates decline.

3. Importance of MoM Calculation

Details: MoM change helps businesses identify trends, measure growth rates, and make data-driven decisions. It's particularly useful for tracking short-term performance and seasonal patterns.

4. Using the Calculator

Tips: Enter the values for two consecutive months. The first month value (M1) must be greater than zero. The result shows the percentage change between the two months.

5. Frequently Asked Questions (FAQ)

Q1: What's a good MoM growth rate?
A: This varies by industry, but generally 5-10% MoM growth is considered strong for SaaS businesses, while physical products might have lower rates.

Q2: How is MoM different from YoY?
A: MoM compares consecutive months, while YoY (Year over Year) compares the same month in different years to account for seasonality.

Q3: When is MoM not useful?
A: MoM can be misleading for very new businesses with small absolute numbers or for metrics with high volatility.

Q4: Should I use MoM for all metrics?
A: MoM is best for growth metrics. For absolute numbers or metrics with long cycles, other time comparisons might be better.

Q5: How do I interpret negative MoM?
A: Negative MoM indicates a decline. Investigate whether this is expected seasonality or requires corrective action.