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,

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 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:

Step 1:

• Select D5 to calculate the compounded monthly growth rate.

• Enter the formula.

• 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

Download Practice Workbook

Download this practice workbook to exercise.

Related Articles

• How to Use the Exponential Growth Formula in Excel
• Growth Formula in Excel with Negative Numbers
• How to Calculate Sales Growth over 3 Years in Excel
• How to Calculate Sales Growth over 5 Years in Excel
• How to Calculate Sales Growth Percentage in Excel
• Growth Over Last Year Formula in Excel

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