Percentage Change vs. Percentage Points
Percentage points and percentage change both compare percentages, but they answer different questions. Learn when to subtract rates and when to calculate relative change.
Quick answer
Use percentage points for the direct difference between two percentages. Use percentage change to measure the relative change compared with the original percentage.
Percentage points = New % − Old % Percentage change = ((New % − Old %) ÷ Old %) × 100The key difference
Percentage points measure the absolute distance between two percentage values. Percentage change measures how large that distance is relative to the starting percentage.
| Measure | How to calculate it | What it tells you |
|---|---|---|
| Percentage points | New percentage − old percentage | The direct difference between two rates |
| Percentage change | ((New percentage − old percentage) ÷ old percentage) × 100 | The relative growth or decline from the starting rate |
If a rate moves from 20% to 25%, it rises by 5 percentage points. Because 5 is one-quarter of the original 20, it also rises by 25%.
What are percentage points?
A percentage point is the arithmetic difference between two percentages. You find it by subtracting one percentage from the other; no division is required.
Example: A rate increases from 4% to 7%
- New percentage: 7%
- Old percentage: 4%
- Subtract: 7% − 4% = 3 percentage points
Answer: The rate increased by 3 percentage points.
Percentage points are commonly used for rates such as interest rates, approval rates, polling results, unemployment rates, test scores, and conversion rates.
What is percentage change?
Percentage change compares the amount of change with the original value. When comparing two percentages, use the original percentage as the denominator.
Example: A rate increases from 4% to 7%
- Find the change: 7% − 4% = 3 percentage points
- Divide by the original rate: 3 ÷ 4 = 0.75
- Convert to a percentage: 0.75 × 100 = 75%
Answer: The rate increased by 75% relative to its original level.
One example, two answers
Consider a website conversion rate that rises from 2% to 3%. Both of the statements below are correct, but they describe different things.
Conversion rate: 2% to 3%
Percentage-point increase: 3% − 2% = 1 percentage point
Relative percentage increase: (1 ÷ 2) × 100 = 50%
Answer: The conversion rate increased by 1 percentage point, or 50% relative to the original rate.
More examples
Example: Interest rate falls from 6% to 4.5%
Percentage-point decrease: 6% − 4.5% = 1.5 percentage points
Relative percentage decrease: (1.5 ÷ 6) × 100 = 25%
Answer: The rate fell by 1.5 percentage points, or 25% relative to its original rate.
Example: Approval rises from 40% to 44%
Percentage-point increase: 44% − 40% = 4 percentage points
Relative percentage increase: (4 ÷ 40) × 100 = 10%
Answer: Approval rose by 4 percentage points, or 10% relative to the original rate.
Example: A defect rate falls from 0.5% to 0.25%
Percentage-point decrease: 0.5% − 0.25% = 0.25 percentage points
Relative percentage decrease: (0.25 ÷ 0.5) × 100 = 50%
Answer: The defect rate fell by 0.25 percentage points, or 50% relative to the original rate.
When to use each term
Use percentage points when comparing rates
Say “percentage points” when you directly subtract one percentage from another. This is usually clearest for interest rates, survey results, market share, conversion rates, and other reported rates.
Use percentage change for relative growth or decline
Say “percent increase” or “percent decrease” when you want to show the scale of a change relative to its starting value.
Use both when context matters
Reporting both measures can make a change clearer: “The rate rose from 2% to 3%, an increase of 1 percentage point, or 50% relative to the original rate.”
Common mistakes
Calling the direct difference “percent”
A move from 20% to 25% is not usually described as a 5% increase. It is a 5-percentage-point increase. The relative percentage increase is 25%.
Using the new percentage as the denominator
Relative percentage change uses the original percentage as the base. For a move from 20% to 25%, divide the 5-point change by 20, not 25.
Ignoring small starting rates
A tiny percentage-point change can be a large relative change when the starting rate is low. Moving from 1% to 2% is only 1 percentage point but a 100% relative increase.
Mixing percentage points with ordinary units
Percentage points only apply when both values are already percentages. A change from $80 to $100 is a $20 change and a 25% increase, not a percentage-point change.
Frequently asked questions
Is a 1% increase the same as 1 percentage point?
No. A 1-percentage-point increase adds one directly to a rate, such as 5% to 6%. A 1% relative increase on a 5% rate gives 5.05%, which is an increase of 0.05 percentage points.
How many percentage points is 20% to 25%?
It is a 5-percentage-point increase because 25% − 20% = 5 percentage points.
What is the percentage change from 20% to 25%?
The change is 5 percentage points. Divide 5 by the original 20 and multiply by 100: 5 ÷ 20 × 100 = 25%. The relative increase is 25%.
When should I say percentage points?
Use percentage points when subtracting one percentage from another, especially for rates such as polling, interest, conversion, approval, or unemployment rates.
Can percentage points be negative?
Yes. A movement from 12% to 9% is a decrease of 3 percentage points. You can also describe it as a negative 3-percentage-point change.