Percent vs. percentage points: what is the difference?
Interpret changes in rates, polls and taxes correctly by separating relative percent change from percentage-point change.
When a rate moves from 10% to 12%, it rises by 2 percentage points:
12% - 10% = 2 percentage pointsRelative to the original 10%, however, the increase is 20%:
(12 - 10) / 10 x 100 = 20%Percentage points describe the arithmetic difference between two percentages. Percent change describes that difference relative to the original percentage.
Use percentage points for election polls, interest rates, tax rates and proportions: “support rose from 40% to 45%, a gain of 5 points.” Use percent when comparing the size of the change with the original: that same movement is a 12.5% relative increase.
Saying that a rate “increased by 5%” is ambiguous unless the intended measure is clear. State both figures when the distinction affects interpretation.
Use the percentage calculator to calculate the relative change, and simple subtraction for percentage points.