1. What is Year-over-Year (YoY) Growth?

Year-over-Year (YoY) growth is a key performance indicator that compares a company's revenue from one year to another. It shows how much a company's revenue has grown (or shrunk) compared to the previous year.

2. How Does the Calculator Work?

The calculator uses the YoY growth formula:

Where:

• This Year — Current year's revenue
• Last Year — Previous year's revenue

Explanation: The formula calculates the percentage change in revenue between two comparable years, providing insight into business growth trends.

3. Importance of YoY Calculation

Details: YoY analysis helps businesses evaluate performance, identify trends, and make informed decisions about future strategies. It eliminates seasonal fluctuations that might distort quarterly comparisons.

4. Using the Calculator

Tips: Enter both this year's and last year's revenue in dollars. Both values must be valid (positive numbers, with last year's revenue greater than zero).

5. Frequently Asked Questions (FAQ)

Q1: What's a good YoY growth rate?
A: This varies by industry, but generally 10-20% is considered good for established companies, while startups might aim for higher rates.

Q2: How is YoY different from QoQ?
A: YoY compares full years, while Quarter-over-Quarter (QoQ) compares consecutive quarters, which can be more affected by seasonality.

Q3: Can YoY be negative?
A: Yes, negative YoY indicates revenue declined compared to the previous year.

Q4: When is YoY most useful?
A: YoY is particularly valuable for seasonal businesses where comparing the same periods eliminates seasonal bias.

Q5: What are limitations of YoY analysis?
A: It doesn't account for extraordinary events in either year and may mask short-term trends visible in monthly or quarterly data.