A percentage point is the arithmetic difference between two percentages. A percent is a relative change. If a rate rises from 10% to 15%, it increased by 5 percentage points but by 50 percent.
Why the distinction matters
Politicians, journalists and analysts often say "unemployment rose 5%" when they mean "rose 5 percentage points". The two are very different magnitudes, and confusing them misleads readers.
Quick reference
| From | To | Percentage points | Percent |
|---|---|---|---|
| 10% | 15% | +5 pp | +50% |
| 50% | 55% | +5 pp | +10% |
| 20% | 10% | −10 pp | −50% |
How to calculate each
Percentage points: subtract the old rate from the new rate. Percent change: divide the difference by the old rate and multiply by 100.
Real examples in the news
A central bank raises its policy rate from 2% to 3% — a 1 percentage point increase, but a 50 percent jump in the rate itself. A political poll puts a candidate at 40% after 44% — a 4 percentage point drop, or roughly a 9 percent relative decline (4 ÷ 44 × 100). The same move can sound tiny or huge depending on which unit a headline chooses, so always check whether the figure is absolute (points) or relative (percent).
How to describe a change correctly
Use percentage points when both figures are themselves percentages — interest rates, tax rates, unemployment, market share, pass rates. Use percent when comparing a percentage with its own previous level, or for any ordinary quantity change. A quick test: if the values already carry a percent sign, the absolute gap is in percentage points, and the relative gap is in percent. Saying "up 5%" when a rate moved from 10% to 15% understates the shift fivefold, because the true relative rise is 50 percent.
Why analysts prefer percentage points
When the underlying values are already percentages, percentage points keep the arithmetic honest. A mortgage rate moving from 6% to 7% is a 1 percentage point rise, not a 1 percent rise; in relative terms it is about 16.7 percent, because 1 ÷ 6 × 100 ≈ 16.7. Swapping the units turns a modest-sounding change into a misleading one. Financial reporting, polling and public health all rely on this convention so that readers compare like with like.
Use Mode 3 of our percentage calculator for the relative (percent) change.