When people talk about percentage changes, the wording can get confusing fast. A rise from 10% to 15% can be described in two different ways and each one means something different.
This is where percentage points and percentage change come in. They are not interchangeable and using the wrong term can make a change sound much bigger or smaller than it really is.
This is where percentage points and percentage change come in. They are not interchangeable and using the wrong term can make a change sound much bigger or smaller than it really is.
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What Are Percentage Points?
Percentage points are the simple difference between two percentages. If something moves from 10% to 15%, the increase is 5 percentage points because you subtract the original percentage from the new one.
For example:
– 40% to 44% = 4 percentage points.
– 72% to 63% = a decrease of 9 percentage points.
– 10% to 15% = 5 percentage points.
This term is most useful when you are comparing rates, shares or proportions. You often see it in statistics, finance, politics and health reporting because it keeps the change clear and literal.
For example:
– 40% to 44% = 4 percentage points.
– 72% to 63% = a decrease of 9 percentage points.
– 10% to 15% = 5 percentage points.
This term is most useful when you are comparing rates, shares or proportions. You often see it in statistics, finance, politics and health reporting because it keeps the change clear and literal.
What is Percentage Change?
Percentage change measures how much a value has increased or decreased relative to the original value. The formula is:
\text{Percentage change} = \frac{\text{new value} – \text{old value}}{\text{old value}} \times 100
So if a value rises from 10 to 15, the difference is 5, but the percentage change is 50% because 5 is half of 10.
That relative comparison is what makes percentage change so useful. It tells you not just how much something moved, but how big that movement is compared with where it started.
Simple Example
Let’s use the same example of 10% increasing to 15%.
Percentage point change: 15% – 10% = 5 percentage points.
Percentage change: (15 – 10) \div 10 \times 100 = 50%.
Both answers are correct, but they describe different things. The first tells you the absolute gap between two percentages, while the second tells you how large the rise is compared with the original figure.
This distinction matters because saying “it went up 5%” when you actually mean “5 percentage points” can seriously mislead readers.
Another Example
Imagine an interest rate goes from 3% to 4%:
The change in percentage points is 1.
The percentage change is (4 – 3) \div 3 \times 100 = 33.3%.
That means the rate increased by just 1 percentage point, but the relative increase was a much larger 33.3%. This is exactly why journalists, analysts, and finance writers need to be careful with wording.
\text{Percentage change} = \frac{\text{new value} – \text{old value}}{\text{old value}} \times 100
So if a value rises from 10 to 15, the difference is 5, but the percentage change is 50% because 5 is half of 10.
That relative comparison is what makes percentage change so useful. It tells you not just how much something moved, but how big that movement is compared with where it started.
Simple Example
Let’s use the same example of 10% increasing to 15%.
Percentage point change: 15% – 10% = 5 percentage points.
Percentage change: (15 – 10) \div 10 \times 100 = 50%.
Both answers are correct, but they describe different things. The first tells you the absolute gap between two percentages, while the second tells you how large the rise is compared with the original figure.
This distinction matters because saying “it went up 5%” when you actually mean “5 percentage points” can seriously mislead readers.
Another Example
Imagine an interest rate goes from 3% to 4%:
The change in percentage points is 1.
The percentage change is (4 – 3) \div 3 \times 100 = 33.3%.
That means the rate increased by just 1 percentage point, but the relative increase was a much larger 33.3%. This is exactly why journalists, analysts, and finance writers need to be careful with wording.
Use our percentage increase and decrease calculator to work out how much a value has risen or fallen between two numbers. It’s designed to give you a quick, clear percentage change based on an original value and a new value.
When To Use Each Term
Use percentage points when you are comparing one percentage with another percentage. That includes rates, survey results, interest rates, inflation percentages and similar data.
Use percentage change when you are comparing a new number with an original number. That includes prices, sales, visitors, weight, revenue or anything that rises or falls from a starting figure.
A quick rule helps:
– If you are subtracting percentages from percentages, use percentage points.
– If you are measuring change relative to the original value, use percentage change.
Use percentage change when you are comparing a new number with an original number. That includes prices, sales, visitors, weight, revenue or anything that rises or falls from a starting figure.
A quick rule helps:
– If you are subtracting percentages from percentages, use percentage points.
– If you are measuring change relative to the original value, use percentage change.
Common Mistakes To Avoid
One common mistake is saying “10% increase” when the correct description is “10 percentage points.” If a rate changes from 20% to 30%, that is not a 10% increase, it is a 10 percentage point increase and a 50% increase relative to the original value.
Another mistake is assuming percentage change and percentage points give the same result. They only match in special cases and usually they do not. The difference becomes more noticeable when the starting percentage is small.
A third mistake is leaving the reference point unclear. Always ask: percentage of what and compared with what? That keeps your wording accurate and your readers less likely to misread the number.
Another mistake is assuming percentage change and percentage points give the same result. They only match in special cases and usually they do not. The difference becomes more noticeable when the starting percentage is small.
A third mistake is leaving the reference point unclear. Always ask: percentage of what and compared with what? That keeps your wording accurate and your readers less likely to misread the number.
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Why This Matters
The difference between percentage points and percentage change is small in wording but big in meaning. In news, business, finance and everyday maths, that difference can completely change how a result is understood.
Related Reading
If you want a broader statistical explanation, Eurostat has a clear definition of percentage points and percentage change. For a simple practical explanation, the University of Oregon and related teaching resources also give useful examples.
