This doesn’t work like that. It moves on to the next word the moment you type a space. Also, https://monkeytype.com/about says:
stats
wpm - total amount of characters in the correctly typed words (including spaces), divided by 5 and normalised to 60 seconds.
raw wpm - calculated just like wpm, but also includes incorrect words.
acc - percentage of correctly pressed keys.
char - correct characters / incorrect characters. Calculated after the test has ended.
consistency - based on the variance of your raw wpm. Closer to 100% is better. Calculated using the coefficient of variation of raw wpm and mapped onto a scale from 0 to 100.
So, they assume the average word has 5 characters. Makes sense for computing wpm in random text.
You can go back and delete errors, and also the default corpus is random words which probably average out to close enough to 5 characters. There are other modes which include punctuation and capitalization, as well as longer quotes to type, as well as expert and master modes (which fails you on a wrong word or character, respectively). I've never heard about this site before but it's pretty full featured!
stats
wpm - total amount of characters in the correctly typed words (including spaces), divided by 5 and normalised to 60 seconds.
raw wpm - calculated just like wpm, but also includes incorrect words.
acc - percentage of correctly pressed keys.
char - correct characters / incorrect characters. Calculated after the test has ended.
consistency - based on the variance of your raw wpm. Closer to 100% is better. Calculated using the coefficient of variation of raw wpm and mapped onto a scale from 0 to 100.
So, they assume the average word has 5 characters. Makes sense for computing wpm in random text.