What is a percentage point?
A percentage point is the simple arithmetic difference between two percentages. Subtract the old percentage from the new one and you have the move in percentage points. A tax rate rising from 10 percent to 15 percent rose 5 percentage points. No scaling, no division: just the gap.
Percent change, by contrast, takes that gap and measures it against the starting value. The same 5 point move is (15 - 10) / 10 x 100 = 50 percent. The two numbers describe the same event, but they answer different questions: "how far did it move" versus "how big was the move relative to where it started."
Example 1: the tax rate
A tax rate rises from 10 percent to 15 percent. Percentage points: 15 - 10 = 5 percentage points. Percent change: (15 - 10) / 10 x 100 = 50 percent. Saying "taxes rose 5 percent" would be wrong and would dramatically understate the change. The correct plain statement is "the rate rose 5 percentage points, a 50 percent increase."
Example 2: the poll swing
A candidate's support moves from 42 percent to 46 percent. Percentage points: 46 - 42 = 4 percentage points. Percent change: 4 / 42 x 100 = 9.52 percent. Election coverage almost always reports the 4 point move, because that is the number that decides who wins. The 9.5 percent figure describes the momentum, not the outcome.
Example 3: the mortgage rate
A mortgage rate falls from 7 percent to 6.5 percent. Percentage points: 7 - 6.5 = 0.5 percentage points. Percent change: 0.5 / 7 x 100 = 7.14 percent. Lenders quote the half-point move, because half a point on a mortgage is thousands of dollars. The 7.14 percent figure is the relative size of the drop.
Example 4: the approval rating
An approval rating rises from 60 percent to 75 percent. Percentage points: 75 - 60 = 15 percentage points. Percent change: 15 / 60 x 100 = 25 percent. This pair shows how the two can diverge: 15 points sounds bigger than 25 percent to most readers, but the 25 percent figure is the one that measures the gain against the starting base.
When to use each one
Use percentage points when the values are already percentages and you want the plain difference: interest rates, poll numbers, tax rates, unemployment rates, pass rates. "Unemployment fell 2 percentage points" is immediately clear.
Use percent change when you want growth relative to a starting value: revenue, prices, salaries, followers, sales. "Revenue grew 25 percent" is the natural phrasing.
Name which one you mean. Most confusion comes from headlines that say "up 5 percent" without saying whether they mean 5 points or 5 percent. The fix is one word: write "5 percentage points" or "5 percent," never bare "5 percent" when you mean points.
Watch for spin. Whoever picks the number picks the story. A fee rising from 1 percent to 2 percent is "just 1 percentage point" to the company charging it and "a 100 percent increase" to the customer paying it. Both are true. Knowing the difference is what keeps you from being moved by the framing.
Compute the percent side. Enter the old and new percentages and get the percent change, so you can quote both numbers correctly.
Try the free percent change calculatorPercentage points questions, answered
What is a percentage point?
A percentage point is the simple arithmetic difference between two percentages. If a rate moves from 10 percent to 15 percent, it rose 5 percentage points. It is the raw gap, with no scaling relative to the starting value.
How do you convert percentage points to percent change?
Divide the percentage-point difference by the starting percentage and multiply by 100. A move from 10 to 15 percent is 5 percentage points, and 5 / 10 x 100 = 50 percent change. Percentage points divided by the starting value gives percent change.
Is it correct to say percent instead of percentage points?
Usually not. Saying a tax rate rose 5 percent when it went from 10 to 15 percent understates the move: the real increase relative to the starting rate is 50 percent. Use percentage points for the raw difference between two percentages, and percent for change relative to a starting value.
Why do news headlines confuse percent and percentage points?
Because the smaller number often sounds more dramatic, or the larger one does, depending on the story being told. A poll moving from 42 to 46 percent is a 4 point move but a 9.5 percent change. Precise reporting names which one it means; sloppy reporting picks whichever number fits the headline.
When should you use percentage points instead of percent?
Use percentage points when the change itself is already expressed in percentages and you want the plain difference: interest rates, poll numbers, tax rates, unemployment rates. Use percent change when you want to describe growth relative to a starting value, like revenue or prices.