Compute the percentage change between two years, and the compound annual growth rate (CAGR) over multiple years.
Input Data
Results
At a glance:YoY is the percentage change between two years; CAGR compounds that change evenly over the number of years.
Formula
yoy = (finalValue − initialValue) / initialValue × 100%
cagr = (finalValue / initialValue)^(1 / years) − 1
$$\text{YoY} = \dfrac{V_{\text{final}} - V_{\text{initial}}}{V_{\text{initial}}} \times 100\%$$$$\text{CAGR} = \left(\dfrac{V_{\text{final}}}{V_{\text{initial}}}\right)^{1/n} - 1$$How to Use
- Enter the initial and final year values.
- Enter the years between them.
- Review the YoY rate and CAGR.
FAQ
What is the difference between year-over-year (YoY) growth and CAGR?
YoY is the simple percentage change between two points; CAGR spreads total growth evenly across the years as a compound annual rate, smoothing out yearly swings and making long-term trends comparable.
What does a negative growth rate mean?
It means the final value is below the initial value—a decline (negative growth). The larger the absolute value, the deeper the drop.
Can I use this for data other than revenue?
Yes. Any two comparable values (profit, user count, output, share price) can be analysed with YoY or CAGR for their change over time.
When should I use YoY vs CAGR?
Use YoY when comparing adjacent years or seeing 'how much it grew this past year'. Use CAGR when measuring and comparing multi-year growth speed—especially across investments of different durations, because only CAGR standardises the time factor for a fair comparison. This calculator gives both: at one year they are equal; over multiple years, YoY shows the cumulative change while CAGR shows the annualised compound speed—for cross-year comparison, rely on CAGR.
What are the blind spots of CAGR—can it mislead?
CAGR's biggest flaw is that it smooths away all intermediate volatility, using only the start and end values. Watch: (1) the same CAGR can hide very different paths—one firm may grow steadily 15% a year, another may surge 80% then crash and recover, yet both show 15% CAGR, with the latter far riskier; (2) it is extremely sensitive to the chosen start and end points—picking a low trough or a bubble peak distorts it, which is often used to 'beautify' numbers; (3) it is a backward-looking average, not a guarantee of future growth; (4) it ignores absolute scale. So treat CAGR as a starting point for comparing long-term growth, but always pair it with yearly actuals, multiple CAGR periods, and absolute size before drawing conclusions.
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.