Percentage points describe the arithmetic difference between two percentage values, while percent change measures the relative change compared with the original percentage. If a rate rises from 20% to 25%, it increases by 5 percentage points, but the relative percent increase is 25%.
Use the Percentage Calculator on the homepage to calculate the relative percentage change between two percentage values.
A rate rising from 20% to 25% changes by five percentage points, while its relative increase is one quarter.
What Percentage Points Mean
Percentage points measure the direct arithmetic difference between two percentages.
If a rate rises from 20% to 25%, subtract 20 percentage points from 25 percentage points. The difference is 5 percentage points.
Percentage points are useful when comparing rates, probabilities, margins, interest rates, survey results, and percentages measured on the same scale.
What Percent Change Means
Percent change measures the size of the change relative to the original percentage.
For a rise from 20% to 25%, the numerical change is 5 percentage points. Divide 5 by the original 20 and multiply by 100.
The relative percent increase is 25%.
Percentage-Point Formula
Subtract the original percentage from the new percentage.
The result retains the unit percentage points rather than percent.
A negative result indicates a decrease in percentage points.
Percent-Change Formula
Subtract the original percentage from the new percentage to find the numerical change.
Divide that change by the original percentage and multiply by 100.
This shows how large the change is relative to where the percentage started.
Worked Example: Increase from 20% to 25%
Subtract 20% from 25%. The direct difference is 5 percentage points.
For relative percent change, divide the 5-point increase by the original 20%. The result is 0.25.
Multiply by 100. The rate increased by 25%.
Why the Results Are Different
Percentage points use subtraction only. Percent change compares that difference with the original percentage.
The five-point increase is large relative to an original rate of 20%, representing one quarter of the starting rate.
Both figures are correct, but they communicate different information.
Example: Decrease from 40% to 30%
The direct difference is 30% − 40%, which equals a decrease of 10 percentage points.
For relative change, divide the 10-point decrease by the original 40%.
The rate decreased by 25%.
Example: Increase from 5% to 10%
The direct increase is 5 percentage points.
However, the new rate of 10% is twice the original rate of 5%.
The relative percent increase is therefore 100%.
Example: Increase from 50% to 55%
The direct difference is again 5 percentage points.
Divide 5 by the original 50 and multiply by 100.
The relative increase is only 10%, showing why the original rate affects percent change.
Interest Rate Example
Suppose an interest rate rises from 3% to 4%. The increase is 1 percentage point.
Relative to the original 3% rate, the increase is approximately 33.33%.
Saying the rate rose by one percentage point is often clearer when discussing interest rates.
Survey and Polling Example
Suppose support for an option rises from 42% to 48%.
The direct increase is 6 percentage points.
The relative increase is approximately 14.29%, calculated as 6 ÷ 42 × 100.
Profit Margin Example
Suppose a company's profit margin rises from 8% to 10%.
The margin increased by 2 percentage points.
Relative to the original 8% margin, this is a 25% increase.
When to Use Percentage Points
Use percentage points when directly comparing two rates or percentages measured on the same scale.
The term is especially useful in finance, economics, polling, education, healthcare statistics, and business reporting.
It avoids ambiguity when a statement could otherwise be mistaken for relative percent change.
When to Use Percent Change
Use percent change when the goal is to describe growth or decline relative to an original value.
This answers questions such as how much larger, smaller, faster, or more frequent the new percentage is compared with the starting percentage.
The Percentage Calculator can help calculate this relative relationship.
Percentage Points Are Not Percentages
The phrase percentage points should be used only for the direct difference between percentages.
A rise from 20% to 25% is not a rise of 5% in relative terms. It is a rise of 5 percentage points or 25%.
Leaving out the word points can materially change the meaning of a report.
Common Reporting Mistakes
One common mistake is describing a five-point increase as a 5% increase.
Another is calculating relative change but labelling the result as percentage points.
Reports should state both values when the distinction matters: for example, an increase of 5 percentage points, equivalent to a 25% relative increase.
Conclusion
Percentage points measure the direct difference between two percentages, while percent change measures the difference relative to the original percentage.
A rise from 20% to 25% equals 5 percentage points and a 25% relative increase.
Use the Percentage Calculator to calculate relative percentage changes and verify your comparison.
Related percentage guides
FAQs
What is the difference between percent and percentage points?
Percentage points describe the arithmetic difference between percentages, while percent change measures that difference relative to the original percentage.
What is the change from 20% to 25%?
It is an increase of 5 percentage points or a 25% relative increase.
How do I calculate percentage points?
Subtract the original percentage from the new percentage.
How do I calculate relative percent change between percentages?
Subtract the original percentage from the new percentage, divide by the original percentage, and multiply by 100.
Can the same percentage-point increase produce different percent changes?
Yes. A five-point increase is a 100% rise from 5% to 10%, but only a 10% rise from 50% to 55%.