# How to Calculate the Monthly Growth Rate in Excel – 2 Methods

This is an overview.

## Introduction to the Monthly Growth Rate

To calculate the month-over-month growth rate, subtract the first month from the second month, then divide it by the previous month’s total. You’ll get a percentage when you multiply the result by 100. The Monthly Growth Rate(MGR) formula is,

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

X = First Month’s Total

Y = Second Month’s Total

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

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

Step 1:

• Select D6 to calculate the monthly growth rate.

• Enter the formula.
`=(C6-C5)/C6`

C6 is the total sale in February and C5 the total sale in January.

• Press Enter and the formula will return 0.30.

Step 2:

• Place your cursor at the bottom-right in D6 to display the AutoFill sign.

• Drag down the Fill Handle to see the result in the rest of the cells.

Step 3:

The formula returns a fraction value. To convert these fraction values into a percentage:

• In the Home tab, go to

Home → Number → Percentage

You will see the monthly growth rate.

Step 4:

This is the graphical representation of the monthly growth rate.

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

### Method 2 – Applying the Compound Interest Rate Formula to Calculate the Monthly Growth Rate in Excel

• Use the formula:
`CMGR =( Last Month/ First month)^(1/ Month Difference) - 1`

Step 1:

• Select D5 to calculate the compounded monthly growth rate.

• Enter the formula.
`=((C16/C5)^(1/(12-1)))-1`
• C16 is the total sale in December and C5 the total sale in January.

• Press Enter and the formula will return 0.060648419.

Step 2:

• To convert fraction values into a percentage:

Home → Number → Percentage

The compounded monthly growth rate is 6.06%.

You can also calculate the annual growth rate in Excel.

Related Content: How to Calculate Dividend Growth Rate in Excel

## Related Articles

<< Go Back to Growth Formula In Excel | Excel Formulas for Finance | Excel for Finance | Learn Excel

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Md. Abdur Rahim Rasel

MD. ABDUR RAHIM is a marine engineer proficient in Excel and passionate about programming with VBA. He views programming as an efficient means to save time while managing data, handling files, and engaging with the internet. His interests extend to Rhino3D, Maxsurf C++, AutoCAD, Deep Neural Networks, and Machine Learning, reflecting his versatile skill set. He earned a B.Sc in Naval Architecture & Marine Engineering from BUET, and now he has become a content developer, creating technical content... Read Full Bio

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