Month-over-month (MoM)
Also known as: month on month
In short
Month-over-month (MoM) is a comparison of a metric in one calendar month against the month right before it, usually shown as a percentage change. It answers the question: are we growing or shrinking compared with last month?
GTM teams use MoM to track pipeline created, meetings booked, revenue, and website leads. It is quick to read but sensitive to noise, so it works best alongside longer comparisons.
How to calculate month-over-month change
The formula is: (this month minus last month) divided by last month, multiplied by 100.
Say a team created 80 qualified opportunities in March and 100 in April. The change is (100 - 80) / 80 = 25 percent growth. If April had been 60, the change would be negative 25 percent.
Where GTM teams use MoM
- Pipeline: New pipeline created each month, to spot a slowdown early.
- Outbound activity: Emails sent, replies, and meetings booked per month.
- Revenue: New and recurring revenue, often shown as a monthly growth rate.
- Marketing: Traffic, sign-ups, and marketing qualified leads.
Limits of MoM
Months are not equal
February has fewer days and working days than March. Comparing raw totals can show a drop that is only the calendar. Compare per working day when it matters.
Seasonality
Many B2B businesses slow down in August and December. A MoM dip in those months may be normal. Compare against the same month a year earlier to check.
Small bases
Going from 2 meetings to 4 is 100 percent growth, but it is two meetings. Show the raw numbers next to the percentage.
MoM vs. other comparisons
- Quarter-over-quarter: Compares one quarter with the previous quarter, smoothing out monthly swings.
- Year-over-year: Compares to the same period last year, which removes seasonality.
- Month-to-date: Looks at the current, unfinished month so far, rather than comparing two full months.
Common mistakes
- Comparing a partial current month with a full previous month.
- Reading one month as a trend. Look at several months in a row.
- Showing percentages without the underlying numbers.
Month-over-month FAQs
What does month-over-month (MoM) mean?
Month-over-month means comparing a metric in one month with the month immediately before it, usually as a percentage change. For example, going from 100 to 110 qualified leads is 10 percent MoM growth.
How do you calculate MoM growth?
Subtract last month's value from this month's value, divide the result by last month's value, and multiply by 100. A result above zero is growth and below zero is decline. Always check that both months are complete.
What is the difference between MoM and YoY?
MoM compares a month with the one before it and shows short-term momentum. YoY compares a period with the same period a year earlier, which removes seasonality and is better for judging long-term growth.
Is month-over-month a good way to measure sales performance?
It is useful for spotting quick changes, but months differ in length and seasonality, and sales cycles often span several months. Use MoM with quarter-over-quarter and year-over-year views before drawing conclusions.
