What is the formula for Year-over-Year (YoY) growth?

Subtract last year's value from this year's value, divide by last year's value, and multiply by 100: ((Current Year − Last Year) / Last Year) × 100. Revenue of $600,000 after $500,000 is 20% YoY growth. Using the absolute value of last year keeps the rate defined when last year was negative.

How do you calculate YoY growth in Excel or Google Sheets?

Use =(Current_Cell - Prior_Cell) / ABS(Prior_Cell) and format the cell as a percentage with Ctrl+Shift+%. With last year in A2 and this year in B2, the formula is =(B2 - A2) / ABS(A2). ABS() handles a transition from a negative net loss to positive net income.

Why do companies use YoY growth instead of Month-over-Month (MoM)?

YoY removes seasonal distortion. A retailer compares Q4 holiday sales with Q4 of the prior year, not with Q3. Month-over-month is useful for a new trend, and it mixes seasonality into the rate.

What is the difference between YoY Growth and CAGR?

YoY measures the change between two matching periods, usually one year apart. Compound Annual Growth Rate (CAGR) smooths growth into one annualized rate across multiple years: (Ending / Beginning)^(1 / years) − 1. A rise from $500,000 to $600,000 is 20% YoY and, over two years, about a 9.54% CAGR.

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InvestingBeginner1 min

Year Over Year Growth Calculator

Calculate Year-over-Year (YoY) percentage growth and absolute change for revenue, users, or financial metrics. Includes the exact YoY formula and Excel/Sheets syntax.

year over year
YoY
growth rate
CAGR
Excel
revenue

Year-over-year growth

Percent change between two matching periods.

Metric unit

Current period value

Prior period value

Periods (years)

Leave this at 1 for a single-year YoY rate. Above 1 also shows annualized CAGR.

YoY growth

+20.00%

Absolute change

+$100,000

Current value

$600,000

Period comparison

Prior period versus the current period.

Key Takeaway: Value increases from $500,000 (Prior) to $600,000 (Current), a net change of +$100,000 (+20.0%).

Was this calculator helpful?

Methodology

Formula & methodology

YoY growth is the percent change between two matching periods. It is not a multi-year average. CAGR is the constant annual rate that connects a positive starting value to a positive ending value over more than one year.

YoY formula

YoY Growth (%) = [(Current Period Value − Prior Period Value) / |Prior Period Value|] × 100

Current Period Value: This year, this quarter, or this month.
Prior Period Value: The matching earlier period. The absolute value lets a swing from a loss to a profit stay defined.

Implied CAGR

CAGR = (Current / Prior)^(1 / Periods) − 1

Periods: Number of years between the two values. CAGR is shown when this is greater than 1 and both values are positive.

Excel / Google Sheets formula

=(B2 - A2) / ABS(A2)

A2 is last year and B2 is this year. Format the cell as a percentage (Ctrl+Shift+%). ABS() keeps the result defined when last year was a net loss. For a multi-year span in C2, implied CAGR is =(B2/A2)^(1/C2)-1, which requires two positive values.

Worked example: revenue from $500,000 to $600,000

Absolute change = $600,000 − $500,000 = $100,000.
YoY growth = $100,000 / |$500,000| × 100 = 20%.
Over 2 years, implied CAGR = (600,000 / 500,000)^(1/2) − 1 = 9.54%.
A swing from a $200,000 loss to $50,000 of income is (50,000 − (−200,000)) / 200,000 = 125% YoY. CAGR is not defined for that sign change.

Revenue grew 20% year over year. The same endpoints two years apart imply a 9.54% CAGR.

Golden Door Financial Model EngineNext Step

Scale From This Calculation Into a Complete 3-Statement Model

Autonomous Financial Analysis & Valuation for Operators, Investors & Founders

Don't stop at an isolated metric. Connect your assumptions, margins, debt, and growth projections into dynamic income statements, balance sheets, and cash flows.

Fully Integrated 3-Statement Modeling

Dynamic Scenario & Sensitivity Analysis

Audit-Ready Executive Reports

Build Your Full Model with Golden DoorDirect access to our flagship financial engine • goldendoorasset.com/model

Guide

How to read this calculator

Helpful tips

1Save your calculations by bookmarking this page with your inputs in the URL.
2Try different scenarios to understand how changes affect your results.
3Share this calculator with friends or family who might find it useful.
4Use the results as a starting point for conversations with financial advisors.
5Bookmark this page and revisit quarterly to track your progress toward goals.

How to Use the Year Over Year Growth Calculator

Year-over-year growth is [(Current Period Value − Prior Period Value) / |Prior Period Value|] × 100. The absolute value in the denominator keeps the sign correct when last period was a loss. Across more than one year, implied CAGR is (Current / Prior)^(1 / years) − 1 when both values are positive.

Step-by-Step Instructions

Choose a metric unit: $ Currency, # Units / Users, or % Rate. The unit changes how values are labeled. The growth percent uses the same formula for all three.

Enter this period's value and the prior period's value for the same metric and the same calendar slice.

Compare Q4 with last year's Q4 when the business is seasonal.

Leave Periods at 1 for a single-year YoY rate. Enter a number greater than 1 to also see implied CAGR.

Read YoY growth and the absolute change. CAGR appears only when the span is longer than one year and both values are positive.

When to Use This Calculator

When you want to compare financial performance between two consecutive years.

year over yearYoYgrowth rateCAGRExcel

Who Benefits Most

•Business Owners
•Investors
•Financial Analysts

1 min

Beginner

Understanding Your Results

YoY is a single matching-period change. CAGR appears only when you set periods above 1.

What Each Result Means

YoY growth

Percent change versus the absolute value of the prior period.

Interpretation: A positive rate means the metric increased. Compare it with the same period last year, not with last month, when seasonality matters.

Absolute change

Current value minus prior value, in the unit you selected.

Interpretation: A large percent on a small base can be a small dollar, user, or rate change.

Implied CAGR

Annualized rate from the prior value to the current value.

Interpretation: Use it when the two observations are more than a year apart. It is not a substitute for a one-year YoY rate.

What to Do With Your Results

If The business is seasonal:

Keep the comparison on the same quarter or month last year. A strong December versus November is a month-over-month figure, not YoY.

Important Limitations:

• YoY divides by the prior value, so a prior value of zero has no growth rate.
• CAGR requires two positive numbers. A loss-to-profit swing has a YoY rate and no CAGR.
• Neither rate adjusts for acquisitions, currency, or inflation unless those are already in the values you enter.

Real-World Example: 20% revenue growth, 9.54% CAGR over two years

Scenario

Revenue was $500,000 last year and $600,000 this year. The same pair of values is also checked across a two-year span.

Outcome

YoY growth is 20%. Implied CAGR over two years is about 9.54%. YoY answers the one-period change. CAGR smooths that change into an annual rate.

Frequently Asked Questions

Common questions about the Year Over Year Growth Calculator

Understanding Results(1 questions)

Getting Started(1 questions)

Best Practices(1 questions)

Advanced(1 questions)

Still have questions? Check our financial glossary for definitions or explore our learning resources.

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Home

InvestingBeginner1 min

Year Over Year Growth Calculator

Calculate Year-over-Year (YoY) percentage growth and absolute change for revenue, users, or financial metrics. Includes the exact YoY formula and Excel/Sheets syntax.

year over year
YoY
growth rate
CAGR
Excel
revenue

Year-over-year growth

Percent change between two matching periods.

Metric unit

Current period value

Prior period value

Periods (years)

Leave this at 1 for a single-year YoY rate. Above 1 also shows annualized CAGR.

YoY growth

+20.00%

Absolute change

+$100,000

Current value

$600,000

Period comparison

Prior period versus the current period.

Key Takeaway: Value increases from $500,000 (Prior) to $600,000 (Current), a net change of +$100,000 (+20.0%).

Was this calculator helpful?

Methodology

Formula & methodology

YoY formula

YoY Growth (%) = [(Current Period Value − Prior Period Value) / |Prior Period Value|] × 100

Current Period Value: This year, this quarter, or this month.
Prior Period Value: The matching earlier period. The absolute value lets a swing from a loss to a profit stay defined.

Implied CAGR

CAGR = (Current / Prior)^(1 / Periods) − 1

Periods: Number of years between the two values. CAGR is shown when this is greater than 1 and both values are positive.

Excel / Google Sheets formula

=(B2 - A2) / ABS(A2)

Worked example: revenue from $500,000 to $600,000

Absolute change = $600,000 − $500,000 = $100,000.
YoY growth = $100,000 / |$500,000| × 100 = 20%.
Over 2 years, implied CAGR = (600,000 / 500,000)^(1/2) − 1 = 9.54%.
A swing from a $200,000 loss to $50,000 of income is (50,000 − (−200,000)) / 200,000 = 125% YoY. CAGR is not defined for that sign change.

Revenue grew 20% year over year. The same endpoints two years apart imply a 9.54% CAGR.

Golden Door Financial Model EngineNext Step

Scale From This Calculation Into a Complete 3-Statement Model

Autonomous Financial Analysis & Valuation for Operators, Investors & Founders

Don't stop at an isolated metric. Connect your assumptions, margins, debt, and growth projections into dynamic income statements, balance sheets, and cash flows.

Fully Integrated 3-Statement Modeling

Dynamic Scenario & Sensitivity Analysis

Audit-Ready Executive Reports

Build Your Full Model with Golden DoorDirect access to our flagship financial engine • goldendoorasset.com/model

Guide

How to read this calculator

Helpful tips

1Save your calculations by bookmarking this page with your inputs in the URL.
2Try different scenarios to understand how changes affect your results.
3Share this calculator with friends or family who might find it useful.
4Use the results as a starting point for conversations with financial advisors.
5Bookmark this page and revisit quarterly to track your progress toward goals.

How to Use the Year Over Year Growth Calculator

Step-by-Step Instructions

Choose a metric unit: $ Currency, # Units / Users, or % Rate. The unit changes how values are labeled. The growth percent uses the same formula for all three.

Enter this period's value and the prior period's value for the same metric and the same calendar slice.

Compare Q4 with last year's Q4 when the business is seasonal.

Leave Periods at 1 for a single-year YoY rate. Enter a number greater than 1 to also see implied CAGR.

Read YoY growth and the absolute change. CAGR appears only when the span is longer than one year and both values are positive.

When to Use This Calculator

When you want to compare financial performance between two consecutive years.

year over yearYoYgrowth rateCAGRExcel

Who Benefits Most

•Business Owners
•Investors
•Financial Analysts

1 min

Beginner

Understanding Your Results

YoY is a single matching-period change. CAGR appears only when you set periods above 1.

What Each Result Means

YoY growth

Percent change versus the absolute value of the prior period.

Interpretation: A positive rate means the metric increased. Compare it with the same period last year, not with last month, when seasonality matters.

Absolute change

Current value minus prior value, in the unit you selected.

Interpretation: A large percent on a small base can be a small dollar, user, or rate change.

Implied CAGR

Annualized rate from the prior value to the current value.

Interpretation: Use it when the two observations are more than a year apart. It is not a substitute for a one-year YoY rate.

What to Do With Your Results

If The business is seasonal:

Keep the comparison on the same quarter or month last year. A strong December versus November is a month-over-month figure, not YoY.

Important Limitations:

• YoY divides by the prior value, so a prior value of zero has no growth rate.
• CAGR requires two positive numbers. A loss-to-profit swing has a YoY rate and no CAGR.
• Neither rate adjusts for acquisitions, currency, or inflation unless those are already in the values you enter.

Real-World Example: 20% revenue growth, 9.54% CAGR over two years