Year over Year (YoY) Growth Calculator

CAGR (Compound Annual Growth Rate) assumes growth compounds each period, while AAGR (Average Annual Growth Rate) calculates a simple average of growth over the entire period. CAGR is typically more accurate for investments or values that compound over time.

Inflation erodes the purchasing power of money over time. By factoring in inflation, you can calculate the real growth rate, which provides a more accurate picture of the actual increase in value or purchasing power.

Yes, the calculator can handle negative growth scenarios. Simply enter a current amount that is lower than the starting amount to calculate a negative growth rate.

The future value projection is an estimate based on the calculated growth rate continuing at the same pace. It’s a useful indicator but should be used cautiously, as future performance may vary due to changing conditions.

More frequent compounding typically results in a higher effective growth rate. For example, monthly compounding will yield a slightly higher effective rate than annual compounding, assuming the same nominal rate.

While it can be used for short-term analysis, the calculator is most effective for periods of one year or more. For very short-term analyses, other tools might be more appropriate.

The graph visualises both the actual growth and inflation-adjusted growth over time. The steeper the curve, the higher the growth rate. The gap between the two lines represents the impact of inflation on real growth.

There’s no strict limit, but for very long time spans (e.g., over 50 years), be aware that the assumptions of consistent growth become less reliable due to potential long-term economic changes.