Year-Over-Year Growth Calculator
What is YoY growth?
Year-over-year (YoY) is a key performance indicator that measures the percentage change in a particular metric over a one-year period. It is usually used to track an organization’s performance in various areas.
Calculating YoY growth over monthly changes helps you to overcome effects of seasonality or monthly volatility to give you a clearer and more accurate picture of your performance. This can help you to make data-driven decisions about long term business goals.
How to use the YoY growth calculator
To calculate YoY growth, enter the current year’s value and the previous year’s value into the calculator. These values can be for various metrics such as:
- Revenue
- Organic traffic
- Customer base
The tool will instantly calculate your YoY growth rate, showing your percentage increase or decrease in the given metric in a particular year.
YoY growth formula
YoY Growth (%) = [(Value in Current Year−Value in Previous Year)/Value in Previous Year] ×100
Understanding the YoY growth result
The ideal YoY growth depends on your goals and the metric that you are measuring. Your YoY value can be either positive or negative.
- A positive YoY growth indicates an increase in the metric being measured. The higher the value, the better is the performance in the area that you are measuring.
- A negative YoY indicates a decrease in the given metric. This indicates potential challenges and decline of performance in the given metric.
When to calculate YoY growth
Yoy growth should be calculated regularly to monitor your long-term performance in key metrics. Here are some key situations where you might want to calculate YoY growth:
- During annual financial reviews to assess overall business growth
- When comparing different time periods to identify seasonal trends or patterns
- To evaluate the impact of new marketing campaigns or product launches
- To gauge market demand and competitive positioning in your industry
- To benchmark your company's growth against competitors or industry standards
How to calculate YoY growth with example
Let’s say that your business generated $1,200,000 in revenue this year compared to $1,000,000 in revenue last year. You can calculate YoY growth rate as follows:
YoY Growth (%) = [(Value in Current Year−Value in Previous Year)/Value in Previous Year] ×100
YoY growth = (200,000/1,000,000) × 100 = 20%
In this example, your YoY growth is 20%, indicating that your revenue increased by 20% from the previous year.
How to improve your YoY growth?
Depending on the metric that you are calculating you might need to focus on different aspects:
| Metric | What You Need to Improve |
|---|---|
| Organic Traffic | Focus on various SEO strategies that drive more traffic to your page. |
| Revenue | Identify and address pain points affecting revenue, such as pricing strategies, customer base, and product quality. |
| Customer Base | Improve your customer retention and acquisition strategies. |
| Conversion Rate | Identify and address issues in areas like user experience, A/B testing, and content quality. |
| Churn Rate | Enhance customer support, implement value-driven content strategies, analyze customer behavior, and improve product quality. |
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