1. What is Year Over Year Growth?

Year-over-year (YoY) growth compares a company's current performance with the same period from the previous year. It's a key metric for analyzing business trends and performance over time.

2. How Does the Calculator Work?

The calculator uses the growth percentage formula:

Where:

• Current Year — Sales in the current period
• Previous Year — Sales in the comparison period

Explanation: The formula calculates the percentage change between two periods, showing how much sales have grown or declined.

3. Importance of YoY Growth Calculation

Details: YoY growth helps businesses track performance trends, adjust strategies, and make informed decisions. It eliminates seasonal fluctuations by comparing similar periods.

4. Using the Calculator

Tips: Enter sales figures for both current and previous years in currency format. Previous year must be greater than zero for valid calculation.

5. Frequently Asked Questions (FAQ)

Q1: Why use YoY instead of sequential growth?
A: YoY growth accounts for seasonality by comparing similar periods, while sequential growth compares consecutive periods which may have different seasonal patterns.

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

Q3: Can YoY growth be negative?
A: Yes, negative growth indicates declining sales compared to the previous year.

Q4: How does inflation affect YoY growth?
A: For accurate comparison, consider using inflation-adjusted (real) growth figures rather than nominal values.

Q5: Should I use revenue or units sold for YoY?
A: Both metrics are valuable - revenue shows monetary growth while units show volume growth, which may differ due to price changes.