12-Month Growth Rate Calculator
Calculate your annual percentage increase or decrease over a one-year period.
What is a 12-Month Growth Rate?
A 12-month growth rate, often referred to as year-over-year (YoY) growth, measures the percentage change in a specific metric over a full annual cycle. This metric is essential for businesses tracking revenue, marketing teams monitoring website traffic, and investors evaluating portfolio performance.
The 12-Month Growth Formula
To calculate the growth rate manually, you use the following formula:
Step-by-Step Calculation Example
Suppose your business had 5,000 active users in January (Month 0) and grew to 8,500 active users by the following January (Month 12).
- Step 1: Subtract the initial value from the final value (8,500 – 5,000 = 3,500).
- Step 2: Divide that difference by the initial value (3,500 / 5,000 = 0.7).
- Step 3: Multiply by 100 to get the percentage (0.7 * 100 = 70%).
In this case, your 12-month growth rate is 70%.
Linear vs. Compounded Monthly Growth
Our calculator provides two types of monthly breakdowns:
Linear Average: This simply takes the total percentage and divides it by 12. It assumes growth was the exact same amount every month relative to the starting point.
Compounded Monthly Growth Rate (CMGR): This is more accurate for businesses where growth "snowballs." It calculates the rate at which your metric would need to grow each month, compounding on the previous month's total, to reach the final value.
Why Track 12-Month Growth?
Short-term fluctuations (month-to-month) can be noisy due to seasonality (e.g., holiday spikes in retail). A 12-month view smooths out these seasonal variations, providing a clearer picture of the long-term health and trajectory of your project or business.