YoY Growth Formula:
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Definition: This calculator measures the year-over-year growth percentage between two values.
Purpose: It helps business analysts, investors, and managers track performance changes between comparable periods.
The calculator uses the formula:
Where:
Explanation: The difference between current and previous values is divided by the previous value to get the relative change, then multiplied by 100 to convert to percentage.
Details: YoY growth eliminates seasonal fluctuations, providing a clearer picture of true business performance trends.
Tips: Enter the current period value and previous period value. The previous value cannot be zero.
Q1: What does negative YoY growth indicate?
A: Negative growth means the current value is less than the previous period's value, indicating declining performance.
Q2: How is YoY different from QoQ?
A: YoY compares annual periods, while QoQ (Quarter-over-Quarter) compares consecutive quarters.
Q3: What if my previous value was zero?
A: YoY cannot be calculated when the previous value is zero as it would require division by zero.
Q4: What units should I use?
A: The calculator works with any consistent units (dollars, units sold, etc.) as long as both values use the same unit.
Q5: How precise should my inputs be?
A: Use the same precision as your source data. The calculator handles up to 2 decimal places in the result.