Convert an Annual Growth Rate to a Monthly Growth Rate

How to convert an Annual Growth Rate to a Monthly Growth Rate. See post for an Excel template that includes a conversion calculator.

[simfinso]

Very Nice & Useful You can use Rate Function too.(nper =12, pmt= skip, pv -100, fv 105, type 0)

[jimbrennan]

Word of warning depending on the situation. If a client forecasts 5% YOY growth rate on a base of 100 revenue, he expects the sum of next year's revenue t be 105, not 103.33 as this model may suggest. The values match in p=12 but the sum of revenue in year 1 is less than expected.

Make sure if this is your requirement to use the correct average of the prior year figure as a base to forecast growth. E.g. if you carry on the demonstration to p=24 the YOY growth starts to work.

[schmerz]

Thank you so much!!!! I was losing my mind scouring the internet to find a solution to this problem.

[bananacute]

Hello! I would like to ask why is the value of Period 0 based on your excel is 1.0000? Is that constant or it depends upon the value of your Period 1 on your Annual? Thank you!

[StrikerAPT]

It works perfectly for 1 year period, but I'm having some trouble trying to calculate bigger periods like 5 years. Can you help me? First if I just use the value of the 12 months, obviously will impact in a smaller CAGR in 5 years. But if I try to calculate using 60 months, for instance ˆ(1/60)-1 I'll get a small value that will not add up to the CAGR projected for 5 years. How can I solve that? I appreciate if you have the time to help me, thank you.

[pratapd]

u should make the video in an elaborated way, this is not history that once story is read out everything is done