1. Two Ways to Describe One Move
Suppose a rate moves from 5% to 7%. One description says it rose by 2. Another says it rose by 40%. They are not in conflict; they use different bases.
The first compares the two percentages directly. The second compares the move with where the rate started.
2. Percentage Points: The Difference
A percentage point is one unit on the percentage scale. Going from 5% to 7% is a difference of 7 − 5 = 2 percentage points.
Percentage points are just subtraction. They say how far apart two percentages are without saying how large that gap is compared with either of them.
3. Percent: The Relative Change
The percent change measures that gap against the starting rate. The gap is 2 and the start is 5, so the change is 2 ÷ 5 = 40.00%.
In the Percentage Calculator, enter 5 as the starting value and 7 as the ending value, and leave the percentage change empty. It is worked out as +40.00%.
4. A Fall Works the Same Way
A rate from 12% to 9% is down 3 percentage points, because 12 − 9 = 3. As a percent change it is down 3 ÷ 12 = 25.00%.
The two figures are always different unless the starting rate is 100%, because the percent change divides the point change by the starting rate.
5. What This Does Not Tell You
Neither figure says whether a change is large or small in practice, or why it happened. A move of 2 percentage points can matter a lot or very little depending on what the rate measures.
This article uses plain numbers and does not refer to any real rate, index or measurement.
Example: 5% to 7%, and 12% to 9%
From 5% to 7%: 2 percentage points up, 40.00% up as a percent change.
From 12% to 9%: 3 percentage points down, 25.00% down as a percent change.
The Bigger Picture
When a figure about a percentage changes, check which one is being reported: the gap in points, or the percent change measured against the start. The words "up 2%" on their own do not say.
Things to Consider
- Look for the words "percentage points" when two percentages are subtracted.
- Remember that a percent change needs a starting value to be measured against.
- Do not mix the two when comparing figures from different sources.
- State both when you report a change, if the difference could be misread.
Try the Percentage Calculator
Enter 5 as the starting value and 7 as the ending value, and leave the percentage change empty, to see the percent change between the two rates.
Frequently Asked Questions
Is a percentage point the same as a percent?
No. A percentage point is the plain difference between two percentages. A percent change is that difference divided by the starting percentage.
Why are the two numbers different?
Because they use different bases. The point change is a subtraction; the percent change measures the subtraction against the starting rate.
Does the Percentage Calculator work in percentage points?
No. It works with the percent change. You can use it to find the percent change between two rates by entering them as the starting and ending values; the percentage points are the plain difference you can subtract yourself.
When are they the same number?
Only when the starting rate is 100%, since the percent change divides the point change by the starting rate.