Compound monthly growth rate (CMGR) is the steady monthly growth rate that would take you from the first month's value to the last month's value. It is the monthly version of CAGR.
CMGR = (Last month ÷ First month)^(1 ÷ Number of months between them) − 1
On the sample data below, six months come to 5.91%.
Why it matters
It summarises a bumpy run of months in one honest figure. Averaging monthly growth rates overstates growth whenever months go up and down.
Worked example
The table shows the columns this metric needs from six months of a made-up subscription brand. Add each column up over the six months, then put the totals into the formula:
| Month | Revenue (net of discounts) |
|---|---|
| 2026-01 | ₹4,12,000 |
| 2026-02 | ₹4,38,500 |
| 2026-03 | ₹4,71,200 |
| 2026-04 | ₹4,55,800 |
| 2026-05 | ₹5,02,300 |
| 2026-06 | ₹5,48,900 |
(₹5,48,900 ÷ ₹4,12,000)^(1 ÷ 5) − 1 = 5.91%
Add up first, then divide. Averaging the six monthly figures gives a slightly different answer, because it counts a small month the same as a large one.
Month by month
| Month | Compound monthly growth rate |
|---|---|
| 2026-01 | — |
| 2026-02 | 6.43% |
| 2026-03 | 6.94% |
| 2026-04 | 3.43% |
| 2026-05 | 5.08% |
| 2026-06 | 5.91% |
CMGR calculator
How to read it
Six months of data give five steps of growth, so the exponent is 1 ÷ 5. Counting six steps is the most common mistake.
Common mistakes
- Only the first and last values matter. A great first month or a weak last month changes the answer a lot.
- Use full months at both ends; a partial month at the end makes growth look worse.
- To compare with a yearly figure, (1 + CMGR)^12 − 1 gives the annualised rate.
Calculate compound monthly growth rate in Excel, SQL or Python
The quickest version, for the sample sheet laid out as in the CSV (headers in row 1, months in rows 2 to 7):
=(B7/B2)^(1/(ROWS(B2:B7)-1))-1- Compound monthly growth rate in Excel and Google Sheets — per-month formula and zero-safe version
- Compound monthly growth rate in SQL — query by month and for the period
- Compound monthly growth rate in Python (pandas) — pandas script with expected output
Related metrics
See all business metrics, or the statistics methods that sit behind them.
Questions people ask
- What is compound monthly growth rate?
- Compound monthly growth rate (CMGR) is the steady monthly growth rate that would take you from the first month's value to the last month's value. It is the monthly version of CAGR.
- How do you calculate compound monthly growth rate?
- CMGR = (Last month ÷ First month)^(1 ÷ Number of months between them) − 1. For example, with six months of sample data: (₹5,48,900 ÷ ₹4,12,000)^(1 ÷ 5) − 1 = 5.91%.
- What is the CMGR formula in Excel?
- With the sample data laid out as in the downloadable CSV, =(B7/B2)^(1/(ROWS(B2:B7)-1))-1 gives the figure for the whole period (format the cell as a percentage). For one month, use =(B3/B$2)^(1/(ROW()-2))-1 and fill it down.
- What is a good compound monthly growth rate?
- There is no figure that is right for every business: it depends on your products, prices and channels. Six months of data give five steps of growth, so the exponent is 1 ÷ 5. Counting six steps is the most common mistake.
Check how stable it is
A metric moves for ordinary reasons as well as real ones. These methods separate the two: the spread shows what a normal month looks like, the moving average smooths it, the z-score flags a month that is out of line and the trend line shows the direction.
Guides
About the data on this page
The figures come from a small made-up dataset, printed above in full so you can check every number by hand. Download it as monthly.csv. The results are computed from those rows when the page is built, and the Excel formulas, SQL and Python on these pages are run against the same rows before publishing, so the code and the answers agree.
To get these numbers from your own data without writing formulas, try AnalyzeIt: ask in plain words and it shows the working behind every figure.
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