1. What is Year Over Year (YoY) Percentage Increase?

Year Over Year (YoY) percentage increase is a financial metric that compares the current year's value with the previous year's value to measure growth or decline. It's commonly used in business and economics to analyze performance trends.

2. How Does the Calculator Work?

The calculator uses the YoY percentage increase formula:

Where:

• Current Year Price — The price/value in the current year
• Previous Year Price — The price/value from the previous year

Explanation: The formula calculates the relative change between two annual values, expressed as a percentage.

3. Importance of YoY Calculation

Details: YoY comparisons are valuable because they remove seasonal effects and provide a clearer picture of true growth or decline over time. They're widely used in financial analysis, sales reporting, and economic indicators.

4. Using the Calculator

Tips: Enter both current and previous year prices in the same currency. The calculator will show the percentage increase (positive value) or decrease (negative value).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between YoY and MoM (Month over Month)?
A: YoY compares annual periods to eliminate seasonal variations, while MoM compares consecutive months which may be affected by seasonality.

Q2: Can YoY be negative?
A: Yes, a negative YoY percentage indicates a decrease compared to the previous year.

Q3: How is YoY different from compound annual growth rate (CAGR)?
A: YoY shows change between two specific years, while CAGR shows the smoothed annual growth rate over multiple years.

Q4: When should I use YoY comparisons?
A: Use YoY when analyzing annual trends, especially for businesses with seasonal fluctuations.

Q5: Can I use this for non-financial metrics?
A: Yes, YoY can be calculated for any measurable quantity that changes over time (e.g., website traffic, production output).