As a startup founder, tracking growth isn’t just about looking at this month’s revenue or last quarter’s sales. You need a big-picture view that tells you whether your business is truly scaling over time. That’s where Year-over-Year (YoY) growth comes in.
YoY growth helps you compare a key metric - like revenue, users, or sales - from this year to the same period last year. It smooths out short-term fluctuations and seasonal spikes, giving you a clear, reliable measure of long-term success.
In this guide, you will learn:
What YoY growth is and why it matters for startups.
The YoY growth formula and how to calculate it manually.
How our YoY Growth Calculator works and simplifies your analysis.
What’s a Good YoY Growth Rate for Startups?
Let’s dive in and explore how you can track and accelerate your startup’s growth with YoY analysis. 🚀
What Is Year-over-Year (YoY) Growth?
If you're running a startup, tracking growth isn't just about looking at this month's revenue or last quarter's sales. You need a big-picture view - and that's where Year-over-Year (YoY) growth comes in.
YoY growth compares a metric from this year to the same metric from the previous year, helping you see long-term trends and patterns. Unlike Month-over-Month (MoM) growth, which can be affected by seasonality or short-term fluctuations, YoY growth gives you a clearer, more stable view of your progress.
For example, if your startup's revenue was $100,000 last year and grew to $150,000 this year, your YoY growth rate is 50%. This tells you (and your investors) that you're scaling at a strong pace.
Why Does YoY Growth Matter for Startups?
Tracks Long-Term Progress – Investors love YoY growth because it shows whether your startup is scaling consistently.
Reduces Seasonal Fluctuations – If your sales spike during the holiday season, YoY growth helps put that into context.
Simplifies Growth Comparisons – Whether you're measuring revenue, user acquisition, or churn rates, YoY growth helps compare apples to apples.
Year-over-Year Growth Formula & Calculation
The formula to calculate YoY growth is:
YoY Growth (%) = [(Current Year Value - Previous Year Value) / Previous Year Value] × 100
This formula gives you the percentage change between the two years, helping you quickly assess whether your startup is growing or slowing down.
While this formula is easy to use, calculating it manually for multiple metrics can be time-consuming. That’s why we built the YoY Growth Calculator - so you can get instant, accurate results in seconds.
In the next section, we’ll walk you through how it works.
How the YoY Growth Calculator Works
Our YoY Growth Calculator is designed to help startups quickly analyze their growth over time. Whether you’re tracking revenue, sales, or another key metric, the calculator provides instant, accurate results without the hassle of manual calculations.
Step 1: Select the Years for Comparison
Previous Year – Choose the year you want to compare against.
Current Year – Select the most recent year for analysis.
💡 The previous year should always come before the current year to ensure accurate results.
Step 2: Choose the Type of Growth to Measure
Revenue Growth – Track how much your business income has increased.
Sales Growth – Measure the total number of units sold over time.
💡 Select the option that best aligns with your startup’s key metrics.
Step 3: Select Breakdown Type (Optional)
Yearly – Compares full-year data.
Half-Yearly – Breaks down growth into 6-month intervals.
Quarterly – Provides a 3-month comparison for a more detailed view.
💡 For deeper insights into trends, select a smaller breakdown period.
Step 4: Choose Your Currency
Pick your preferred currency (USD, EUR, GBP, INR, etc.).
This ensures that your financial data is formatted correctly.
Step 5: Enter Your Revenue or Sales Data
Previous Year Amount – Input total revenue or sales from the previous year.
Current Year Amount – Enter total revenue or sales for the current year.
💡 Make sure your values are accurate for precise YoY growth calculations.
Step 6: Click "Calculate Growth"
Once all details are entered, hit the "Calculate Growth" button, and within seconds, you’ll get your YoY growth percentage.
What’s a Good YoY Growth Rate for Startups?
If you’re a startup founder, you might be wondering: What YoY growth rate should I aim for?
The answer depends on your stage, but according to Y Combinator (YC) and top investors, high-growth startups should aim for at least 50-100% YoY growth - especially in the early years.
YC’s Growth Benchmarks for Startups 📈
Early-Stage Startups (Pre-Seed & Seed)
Target YoY Growth: 100%+
Why It Matters: Investors expect rapid adoption and strong product-market fit at this stage. If your startup isn’t at least doubling yearly, it might not be growing fast enough to attract funding.
Series A Startups
Target YoY Growth: 50-100%
Why It Matters: At this stage, startups should be showing clear traction and scalability. A growth rate in this range signals that your business model is working and that you’re ready to scale further.
Later-Stage Startups (Series B & Beyond)
Target YoY Growth: 30-50%+
Why It Matters: Growth naturally slows down as a company scales, but maintaining at least 30-50% YoY growth indicates strong long-term sustainability and market dominance.
Why YC Recommends Tracking Weekly Growth
YC advises founders to track growth weekly instead of yearly. If you can grow 5-7% Week-over-Week (WoW), that compounds to over 1,200% YoY growth - which is exactly the kind of momentum investors love to see.
How to Think About Growth for Your Startup
If you're pre-Series A, aim for aggressive 100%+ YoY growth to prove market demand.
If you're raising Series A, maintaining 50-100% YoY growth will keep investors interested.
If you're post-Series A, sustainable 30-50% YoY growth is still a strong indicator of success.
While every startup’s journey is different, YC’s biggest takeaway is this: If you’re not growing at least 50% YoY, something needs to change. Whether it’s your product, market fit, or go-to-market strategy, growth is the lifeline of any startup.
Frequently asked questions
YoY growth is one of the most important metrics for startups, helping founders track progress, secure investment, and make data-driven decisions. With our YoY Growth Calculator, you can easily measure your startup’s performance and identify trends that drive long-term success.
Try out the calculator now and start tracking your growth! 🚀