Year-Over-Year Percentage Increase Calculation

[Demonsguile]

I'm looking for help in determining the formula for year-over-year (YOY) percentage increase over multiple years. And, I'm only given the original value and the multi-year sum value. For example, in 2022 I spent $75,000 for maintenance on a software package. Now, I want to renew for three years instead of a single year. The pricing on the 3-year package is $280,000. A standard price increase formula would look like =(New-Old)/Old or (280k-225k)/225k = 24.44%, which is interesting, but it's not what I'm after. I want the percentage that each individual year was increased in order to arrive at the new cumulative value. In other words, what was the YOY increase for 2023, 2024, and 2025? In my example, the answer for each individual year would be a 11.34053% increase YOY.

Right now, I'm doing the guess-n-check method. I would love it if someone could help me with a formula so that I don't have to keep doing this.

Thanks,
DG

 

[DRSteele]

The formula for compound annualised growth rate is: (New/Old)^(1/n)-1

It is not possible to infer each annual change when the only knowns are the New, Old and periods (i.e., n) values.

 

[Demonsguile]

The formula for compound annualised growth rate is: (New/Old)^(1/n)-1

It is not possible to infer each annual change when the only knowns are the New, Old and periods (i.e., n) values.

Thank you. That's exactly what I needed to know.

DG

 

[DRSteele]

You're welcome!