Year over year (YOY) growth is a key performance indicator comparing growth in one period (usually a month) against the comparable period twelve months before.
Unlike standalone monthly metrics, YOY gives you a picture of your performance without seasonal effects, monthly volatility, and other factors.
Formula to calculate YOY.
Suppose in July 2019 a shop made a revenue of $50,000 and in 2020 July the same shop made a revenue of $ 70,000. Calculate the YOY growth.
Therefore, the shop’s YOY growth is 40%.