# Year Over Year Growth Calculator

Calculate year-over-year growth rate. Enter current and prior period values to get the YoY percentage change and absolute difference.

## What this calculates

Measure how much a metric has grown (or shrunk) compared to the same period last year. Enter this year's value and last year's value to get the YoY growth rate, absolute change, and growth multiple.

## Inputs

- **Current Period Value** ($) — min 0 — Revenue, sales, or any metric for the current period.
- **Previous Period Value** ($) — min 0 — The same metric for the prior comparable period.

## Outputs

- **YoY Growth Rate** — formatted as percentage — Percentage change from previous to current period.
- **Absolute Change** — formatted as currency — Dollar difference between the two periods.
- **Growth Multiple** — Current value divided by previous value (e.g., 1.25x).

## Details

Year-over-year (YoY) growth compares a metric in one period to the same period in the prior year. The formula is simple: YoY Growth = (Current - Previous) / Previous x 100%. If your Q1 revenue was $125,000 this year and $100,000 last year, that is 25% YoY growth.

YoY is preferred over month-over-month or quarter-over-quarter for most business metrics because it automatically adjusts for seasonality. Retail sales in December are always higher than in February, so comparing December to February is misleading. Comparing December 2024 to December 2023 gives you a clean read on actual growth.

Investors, analysts, and executives use YoY growth to evaluate:
- **Revenue growth:** Is the company growing its top line?
- **Earnings growth:** Are profits increasing?
- **User/subscriber growth:** Is the customer base expanding?
- **Same-store sales:** Are existing locations performing better?

Context matters. A 25% YoY growth rate is exceptional for a Fortune 500 company but expected for a startup. Compare growth rates to industry benchmarks and the company's own historical trends rather than evaluating them in isolation.

## Frequently Asked Questions

**Q: What is the difference between YoY growth and CAGR?**

A: YoY growth compares two consecutive periods (this year vs. last year), while CAGR (Compound Annual Growth Rate) smooths growth over multiple years. If a company grew 10%, 30%, and 5% over three years, each year has its own YoY rate, but the CAGR would be about 14.5% (the annualized average). YoY is better for spotting trends and seasonality; CAGR is better for summarizing long-term performance.

**Q: Can YoY growth be negative?**

A: Yes. Negative YoY growth means the metric declined compared to the same period last year. If revenue was $100,000 last year and $85,000 this year, that is -15% YoY growth. Negative growth is sometimes called a year-over-year decline. It can be caused by market contraction, competitive pressure, or one-time factors in the comparison period.

**Q: How do I calculate YoY growth for monthly data?**

A: Compare the same month in consecutive years. March 2025 revenue compared to March 2024 revenue gives you YoY growth for that month. The formula is the same: (Current Month - Same Month Last Year) / Same Month Last Year x 100%. This approach naturally adjusts for seasonal patterns that would distort month-over-month comparisons.

**Q: What is a good YoY growth rate?**

A: It depends on the industry and company stage. Startups often target 50-100%+ YoY growth. Mid-stage SaaS companies aim for 30-50%. Mature public companies are healthy at 5-15%. The S&P 500 averages about 10% annual returns long-term. Any positive YoY growth that outpaces inflation (roughly 2-3%) means real improvement. Compare to direct competitors and industry benchmarks for context.

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Source: https://vastcalc.com/calculators/finance/year-over-year-growth
Category: Finance
Last updated: 2026-04-08