1. What is Year Over Year Percentage Increase?

Definition: This calculator measures the percentage growth between two comparable periods (typically years) to show performance changes.

Purpose: It helps businesses, investors, and analysts understand growth rates and compare performance across different time periods.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Current Year Value — The measurement for the current period
• Previous Year Value — The measurement for the prior comparable period

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.

3. Importance of YoY Percentage Calculation

Details: YoY comparisons eliminate seasonality effects and provide a clearer picture of true growth or decline in business metrics.

4. Using the Calculator

Tips: Enter both current and previous year values. Values must be positive numbers. The result shows percentage increase (positive) or decrease (negative).

5. Frequently Asked Questions (FAQ)

Q1: What's a good YoY growth percentage?
A: This varies by industry, but generally 10-20% is considered good growth for most businesses.

Q2: Can this be used for monthly or quarterly comparisons?
A: Yes, the same formula works for any time period comparison (Month-over-Month, Quarter-over-Quarter).

Q3: What does a negative percentage mean?
A: A negative result indicates a decrease rather than an increase between the two periods.

Q4: How is this different from compound growth rate?
A: YoY shows simple growth between two periods, while CAGR (Compound Annual Growth Rate) shows smoothed growth over multiple periods.

Q5: Should I use absolute numbers or percentages for comparisons?
A: Percentages are better for comparing growth across different sized businesses or metrics.