1. What is Months Over Months?

Months Over Months (MoM) is a growth rate metric that compares the current month's value to the previous month's value. It shows the percentage change between two consecutive periods, helping to identify trends and growth patterns.

2. How Does the Calculator Work?

The calculator uses the Months Over Months formula:

Where:

• \( Current \) — The value for the current period
• \( Previous \) — The value for the previous period

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

3. Importance of MoM Calculation

Details: MoM is crucial for tracking short-term performance trends in business metrics, sales, website traffic, and other KPIs. It helps identify seasonal patterns and immediate changes.

4. Using the Calculator

Tips: Enter the current period value and previous period value. The previous value cannot be zero. The result shows the percentage change between the two periods.

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 most businesses.

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 most useful?
A: MoM is most useful for tracking short-term trends in rapidly changing metrics or new businesses.

Q4: What are limitations of MoM?
A: MoM can be volatile and affected by seasonality. It's best used with other metrics like YoY for context.

Q5: Can MoM be negative?
A: Yes, negative MoM indicates a decrease from the previous period.