Year-over-Year Growth Calculator
At the same rate next year you'd reach $336,400.00.
How the year-over-year growth calculation works
Subtract last year from this year
$290,000 this year minus $250,000 last year is a $40,000 increase.
Divide the change by last year's figure
$40,000 ÷ $250,000 = 0.16, or 16% year-over-year growth. Always divide by the earlier year, not the later one.
For several years, use the compound rate
Going from $100,000 to $200,000 in 5 years is 100% total growth, but the average yearly rate is (2)^(1/5) − 1 = 14.87%, not 20%.
Compare the same periods
Compare this March with last March, or this year's Q2 with last year's Q2, so seasonal swings don't distort the result.
Worked example. Revenue rose from $250,000 last year to $290,000 this year. The change is $40,000, and $40,000 ÷ $250,000 gives 16.0% year-over-year growth. At the same rate, next year would reach $336,400.
Year-over-Year Growth FAQ
What does YoY mean?
YoY stands for year over year. It compares a figure with the same figure one year earlier, such as this year's revenue against last year's, or this March against last March, and shows the change as a percentage.
What is the year-over-year growth formula?
The YoY formula is (this period − same period last year) ÷ same period last year × 100. Sales of $290,000 against $250,000 last year is $40,000 ÷ $250,000 = 16% growth.
How do I calculate YoY growth for a month or quarter?
Use the same formula, but compare the same month or quarter a year apart. March sales of $42,000 against $36,000 last March is $6,000 ÷ $36,000 = 16.67% YoY growth. Comparing March with February instead would be month-over-month growth.
How do I calculate year-over-year growth in Excel?
With last year in A2 and this year in B2, use =(B2-A2)/A2, or the shorter =B2/A2-1, and format the cell as a percentage. For the average yearly rate over several years, use =(B2/A2)^(1/years)-1, or Excel's built-in =RRI(years, A2, B2), which gives the same result.
What is the difference between YoY growth and CAGR?
YoY compares one year with the year before. CAGR is the steady yearly rate that gets you from a starting value to an ending value over several years, so it smooths out good and bad years.
Can year-over-year growth be negative?
Yes. A fall from $250,000 to $200,000 is −20%. Getting back to $250,000 then takes 25% growth, because the base is smaller.
Why can't I calculate growth from zero?
Growth is measured relative to the starting value, and dividing by zero has no answer. If last year was zero, report the dollar change instead.