What is year-over-year growth?

Year-over-year growth is the percentage change in a metric compared to the same period one year prior. It is used to measure performance trends while accounting for seasonality.

How do you calculate year-over-year growth in Excel?

Use =((B2-B1)/B1)*100 where B1 is last year's value and B2 is this year's. Alternatively, use =(B2/B1)-1 and format the cell as a percentage.

Is 40% year-over-year growth good?

For mid-stage SaaS companies ($10M to $50M ARR), 40% YoY is considered strong and aligns with the Rule of 40. Early-stage startups are typically expected to grow faster, while for mature public companies, 40% would be exceptional.

How do you calculate sales growth year-over-year?

Use the same formula: ((Current Year Sales − Previous Year Sales) / Previous Year Sales) × 100. For example, if sales grew from $2M to $2.4M, the YoY growth rate is 20%. Always compare the same time period.

Can year-over-year growth be negative?

Yes. If the current period value is lower than the previous year, the result will be negative. For example, a YoY growth rate of -15% means the metric declined by 15% compared to the same period last year.