Month to Month Percentage Change Formula:
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The Month to Month (MoM) percentage change measures the rate of change between two consecutive months. It's commonly used in business, economics, and finance to track growth or decline trends over time.
The calculator uses the following formula:
Where:
Explanation: The formula calculates the relative change between two consecutive periods expressed as a percentage.
Details: Month to Month change is crucial for identifying trends, seasonality, and short-term performance in business metrics, sales figures, or economic indicators.
Tips: Enter both this month's and last month's values. The calculator will show the percentage change between them. Last month's value cannot be zero.
Q1: What does a positive/negative percentage mean?
A: Positive percentage indicates growth from last month, negative indicates decline.
Q2: How is this different from Year-over-Year change?
A: MoM compares consecutive months, while YoY compares the same month in different years to account for seasonality.
Q3: What if last month's value was zero?
A: Percentage change is undefined when dividing by zero. You cannot calculate meaningful percentage change from zero.
Q4: How should I interpret large percentage changes?
A: Large percentages may be misleading when dealing with small base numbers. Consider absolute changes alongside percentages.
Q5: Can I use this for weekly or quarterly data?
A: Yes, the same formula works for any consecutive period comparison (week-to-week, quarter-to-quarter).