1. What is Year Over Sales Growth?

Year Over Sales Growth measures the percentage increase or decrease in sales between two comparable periods (typically years). It's a key metric for assessing business performance and growth trends.

2. How Does the Calculator Work?

The calculator uses the Year Over Sales Growth formula:

Where:

• \( Year1 \) — Sales amount in the first year (base period)
• \( Year2 \) — Sales amount in the second year (comparison period)

Explanation: The formula calculates the relative change between two periods, expressed as a percentage of the original value.

3. Importance of Growth Calculation

Details: Year-over-year growth analysis helps businesses identify trends, measure performance against goals, and make informed strategic decisions.

4. Using the Calculator

Tips: Enter sales figures for both years in currency format. Year1 must be greater than zero to avoid division by zero errors.

5. Frequently Asked Questions (FAQ)

Q1: What does negative growth percentage mean?
A: A negative percentage indicates a decline in sales compared to the previous year.

Q2: How is this different from quarter-over-quarter growth?
A: Year-over-year compares the same periods in different years, eliminating seasonal effects, while quarter-over-quarter compares consecutive quarters.

Q3: What's considered good growth percentage?
A: This varies by industry, but typically 10-15%+ is considered strong growth for established businesses.

Q4: Should I use gross or net sales for this calculation?
A: Typically use net sales (after returns/discounts) for accurate growth measurement, unless specifically analyzing gross sales trends.

Q5: How do I annualize growth for partial year data?
A: For partial years, you can project annual growth by scaling the period appropriately, but this calculator requires full year data.