1. What is Year Over Year Sales Growth?

Year Over Year (YoY) sales growth measures the percentage change in sales between two comparable periods (typically years). It provides insight into a company's growth rate and business performance over time.

2. How Does the Calculator Work?

The calculator uses the YoY growth formula:

Where:

• This Year Sales — Current year's total sales revenue
• Last Year Sales — Previous year's total sales revenue

Explanation: The formula calculates the relative change between two periods, expressed as a percentage. Positive values indicate growth, while negative values indicate decline.

3. Importance of YoY Growth Calculation

Details: YoY growth is a key performance indicator (KPI) that helps businesses assess their performance, identify trends, and make strategic decisions. It eliminates seasonal fluctuations by comparing the same periods year-to-year.

4. Using the Calculator

Tips: Enter sales figures in currency format (without commas). Last Year Sales must be greater than zero for the calculation to be valid.

5. Frequently Asked Questions (FAQ)

Q1: Why use YoY instead of sequential growth?
A: YoY growth eliminates seasonal effects that might distort sequential (month-to-month or quarter-to-quarter) comparisons.

Q2: What is considered good YoY growth?
A: This varies by industry, but generally 10-15%+ is strong growth for mature companies, while startups may aim for much higher rates.

Q3: How should currency fluctuations be handled?
A: For multinational companies, it's best to use constant currency figures to eliminate exchange rate effects.

Q4: Can this be used for non-sales metrics?
A: Yes, the same formula works for any comparable metric like users, profits, or units sold.

Q5: How does this differ from CAGR?
A: YoY shows annual changes, while CAGR (Compound Annual Growth Rate) smooths growth over multiple years into an average rate.