1. What Is Revenue Growth YoY?

Revenue Growth Year-over-Year (YoY) measures the percentage change in revenue between two comparable periods (typically years). It's a key metric for assessing business performance and growth trajectory.

2. How Does the Calculator Work?

The calculator uses the revenue growth formula:

Where:

• This Year — Current period revenue (same currency as last year)
• Last Year — Prior period revenue for comparison
• Growth — Percentage change between periods

Explanation: Positive values indicate revenue growth, negative values indicate decline, and zero indicates no change.

3. Importance of Revenue Growth Calculation

Details: YoY growth is crucial for evaluating business performance, making investment decisions, and setting strategic goals. It eliminates seasonal fluctuations by comparing similar periods.

4. Using the Calculator

Tips: Enter revenue amounts in the same currency for both years. Ensure last year's value is greater than zero for valid calculation.

5. Frequently Asked Questions (FAQ)

Q1: What's considered good revenue growth?
A: Varies by industry, but generally 10-25% is strong growth for established companies. Startups may aim for higher percentages.

Q2: How does YoY differ from QoQ?
A: YoY compares annual periods, while Quarter-over-Quarter (QoQ) compares consecutive quarters (more sensitive to seasonality).

Q3: Should I use gross or net revenue?
A: Typically use net revenue (after returns/discounts) for most analyses, unless specifically tracking gross growth.

Q4: What if last year's revenue was zero?
A: Growth percentage is undefined when dividing by zero. The calculator requires last year's revenue > 0.

Q5: How to account for currency fluctuations?
A: For multinationals, convert both periods to a base currency using consistent exchange rates for accurate comparison.