Percentage vs Percentage Points
Written by the percentages.co.uk team. Reviewed for accuracy.
One of the most commonly misunderstood distinctions in mathematics, finance, and news reporting. A percentage change and a percentage point change are not the same thing, and using one when you mean the other changes the meaning significantly.
The definitions
Percentage change
How large a change is relative to the starting value. Expressed as a percentage of where you began.
Percentage point change
The arithmetic difference between two percentage values. A simple subtraction, with no reference to the starting value.
The key rule
Percentage point change is always just the difference on the number line. Percentage change tells you how big that difference is relative to the starting value. For the same movement, the two numbers are almost always different, and one will typically look far more dramatic than the other.
The interest rate example
This is the classic example. Suppose an interest rate rises from 10% to 15%.
In percentage points
- Subtract: 15 - 10 = 5
The rate rose by 5 percentage points.
This is the straightforward arithmetic gap between the two values.
As a percentage change
- Find the difference: 15 - 10 = 5
- Divide by the original: 5 / 10 = 0.5
- Multiply by 100: 50%
The rate rose by 50% relative to where it started.
The rate itself increased by half of its original value.
Why this matters
A news headline saying "interest rates rose 50%" and a headline saying "interest rates rose 5 percentage points" describe the exact same change. The first sounds alarming; the second sounds modest. Being able to identify which measure is being cited prevents you from being misled by how a number is framed.
A political voting example
In a general election, a party's share of the vote rises from 40% to 44%. How should this change be reported?
In percentage points
- Subtract: 44 - 40 = 4
The party gained 4 percentage points of vote share.
As a percentage change
- Find the difference: 44 - 40 = 4
- Divide by the original: 4 / 40 = 0.1
- Multiply by 100: 10%
The party's vote share rose by 10% relative to its previous result.
UK political reporting consistently uses percentage points for vote share changes. Saying a party "increased its vote by 10%" when the gain was 4 percentage points from 40% would be technically correct but misleading to most readers. The convention of using percentage points exists precisely to avoid this ambiguity.
A Bank of England base rate example
The Bank of England's Monetary Policy Committee meets roughly every six weeks to set the base rate. Changes are always reported in percentage points or basis points, not as a relative percentage change.
Worked example: rate cut from 5.25% to 4.75%
The Bank and financial media always report in percentage points (or basis points, where 100 basis points equals 1 percentage point). Reporting this cut as a "9.5% reduction in rates" would be confusing and is never done in professional financial communication. The percentage point figure is the one that matters for calculating mortgage payments, savings rates, and borrowing costs.
A summary of when to use each
| Situation | Use |
|---|---|
| Reporting vote share changes | Percentage points |
| Reporting interest rate changes | Percentage points |
| Comparing performance to a starting baseline | Percentage change |
| Inflation rate movement | Percentage points |
| Year-on-year revenue growth | Percentage change |
| Conversion rate improvement in A/B testing | Percentage points (pp uplift) |
| Exam score change between two sittings | Percentage points |
| Population growth over a decade | Percentage change |
Calculate it yourself
The Percentage Points Calculator shows both measures side by side for any two percentages you enter. It displays the percentage point difference and the relative percentage change together, so you can see exactly how different the two numbers are for the same movement.
To calculate the relative percentage change on its own, use the Percentage Change Calculator, which also shows full step-by-step workings.
Quick reference formulas
Percentage point change
Relative percentage change
Common mistakes to avoid
Saying "percent" when you mean "percentage points"
"Unemployment fell 9.5%" and "unemployment fell 0.4 percentage points" are entirely different statements. The first means the number of unemployed people fell by nearly a tenth. The second means the rate moved from, say, 4.2% to 3.8%. Always be explicit about which you mean.
Assuming the relative change is always the larger number
For small starting values, the relative change will be larger than the percentage point change. But for large starting values the opposite can be true. A 1 pp drop from 80% to 79% is only a 1.25% relative fall. Context determines which number is "bigger" in a meaningful sense.
Mixing the two measures in the same analysis
If you are comparing multiple changes, use the same measure throughout. Mixing percentage point changes with relative percentage changes in a single table or report creates a misleading comparison, because the numbers are not on the same scale.
Related calculators
Percentage Points Calculator
Calculate the difference between two percentages in percentage points and as a relative change, side by side.
Percentage Change Calculator
Calculate the relative percentage change between any two values with step-by-step workings.
Percentage Increase Calculator
Find the percentage increase from one value to a larger value.
Percentage Decrease Calculator
Find the percentage decrease from one value to a smaller value.