Guides
Percent vs percentage points
The two phrases sound alike and mean different things.
Short answer
A percentage point is the plain difference between two percentages. A percent change compares a value with its old value. Going from 4% to 6% is a rise of 2 percentage points, and a 50 percent increase.
Worked example
An interest rate goes from 4% to 6%. The difference is 6 - 4 = 2 percentage points. The relative change is (6 - 4) / 4 x 100 = 50%, so the rate is 50% higher.
When each is used
- Percentage points: changes in rates, shares and probabilities, such as interest rates, unemployment or poll results.
- Percent change: how much larger or smaller one quantity is than another, such as prices or sales.
Mixing them up changes the meaning. "Unemployment rose by 2%" is unclear: it could mean 2 points or 2 percent of the old rate. Say which one you mean.
Calculate the relative change with the percentage change calculator.
Frequently asked questions
Is a percentage point the same as a percent?
No. A percentage point is a unit for the difference between two percentages. A percent expresses a relative change.