We calculate the monthly growth rate to figure out how much our assets and investments are worth. **Microsoft Excel **makes this task easier. From our dataset, in this article, weâ€™ll learn **two **quick and suitable ways to calculate the monthly growth rate in **Excel **with appropriate illustrations. Hereâ€™s an overview of the dataset for todayâ€™s task.

**Table of Contents**hide

## Download Practice Workbook

Download this practice workbook to exercise while you are reading this article.

## Introduction to the Monthly Growth Rate

Undoubtedly, calculating the **month-over-month** growth rate is an easy task. Subtract the **first **month from the **second **month, then divide by the previous **monthâ€™s total** to get **Month-over-Month** growth. Youâ€™ll get a percentage when you multiply the result by **100**. Your **Month-over-Month** growth rate is expressed as a percentage. The Monthly Growth Rate(MGR) formula is,

`MGR = ((Y -X)/ Y)*100%`

Where**,**

**X = First Monthâ€™s Total**

**Y = Second Monthâ€™s Total**

By applying the above formula, we also can calculate the week-over-week growth rate or year-over-year growth rate.

## 2 Suitable Ways to Calculate Monthly Growth Rate in Excel

### 1. Use the Linear Formula to Calculate Monthly Growth Rate in Excel

Letâ€™s say, we have a dataset that contains information about **Sale****s **in **several months**. We can calculate the **month-over-month** growth rate by applying the **Linear** formula in **Excel**. From our dataset, weâ€™ll calculate the linear monthly growth rate.Â Letâ€™s follow the instructions below to learn!

**Step 1:**

- First, select cell
**D6**to calculate the monthly growth rate.

- Hence, write down the below formula in the
**Formula Bar**. The formula is,

`=(C6-C5)/C6`

- Where
**C6**is the total sale in**February**and**C5**is the total sale in**January**.

- After that, simply press
**Enter**on your**keyboard**, and you will get**0.****30**as the return of the formula.

**Step 2:**

- Further, place your
**cursor**on the**bottom-right**on cell**D6**, and an**autoFill sign**will appear in front of you.

- After that, drag the
**autoFill sign**downward, and you will get your desired output that has been given in the below screenshot.

**Step 3:**

- Now, look at our dataset, you will see that the formula returns fraction value. We will convert these fraction values into a percentage. To do that, from
**Home tab**, go to,

**Home â†’ Number â†’ Percentage**

- Finally, after completing the above process, you will get the monthly growth rate.

**Step 4:**

- Hereâ€™s the graphical representation of our monthly growth rate.

**Related Content: How to Calculate Growth Percentage Formula in Excel**

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### 2. Apply the Compound Interest Rate Formula to Calculate Monthly Growth Rate in Excel

In this method, we will calculate compounded monthly growth rate. The formula of theÂ Compounded Monthly Growth Rate(**CMGR**) is,

`CMGR =( Last Month/ First month)^(1/ Month Difference) - 1`

Letâ€™s follow the steps below to calculate compounded monthly growth rate.

**Step 1:**

- First of all, select cell
**D5**to calculate compounded monthly growth rate.

- After that, write down the below formula in the
**Formula Bar**. The formula is,

`=((C16/C5)^(1/(12-1)))-1`

- Where
**C16**is the total sale in**December**and**C5**is the total sale in**January.**

- Hence, press
**Enter**on your**keyboard**, and you will get**060648419**as the return of the formula.

**Step 2:**

- Further, look at our dataset, you will see that the formula returns fraction value. We will convert these fraction values into a percentage. To do that, from your
**Home tab**, go to,

**Home â†’ Number â†’ Percentage**

- Finally, you will be able to calculate
**compounded monthly growth rate**. The compounded monthly growth rate is**6.06%.**

**Related Content: Percentage Formula in Excel (6 Examples)**

## Things to Remember

ðŸ‘‰ The formula returns you a fraction value, then converts it into a percentage for calculating the **monthly growth rate**.

## Conclusion

I hope all of the suitable methods mentioned above to calculate the monthly growth rate will now provoke you to apply them in your **Excel **spreadsheets with more productivity. You are most welcome to feel free to comment if you have any questions or queries.