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Compounded monthly growth rate (CMGR)

What is a compounded monthly growth rate?

A compounded monthly growth rate (CMGR) is a metric used to calculate the average rate at which something (such as revenue, user base, etc.) has grown every month, over a specified period. CMGR is a common metric in the startup world, where monthly growth rates can be a valuable indicator of a company's momentum and potential.

To calculate CMGR, you take the final value at the end of the period, divide it by the starting value, raise the result to the power of 1 divided by the number of months, and then subtract 1. This gives you an average rate at which the value has grown each month. Understanding your CMGR can be useful in projecting future growth and performance, and can help identify trends and areas for improvement.

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