Percentage guide

Percentage Points vs. Percent Change

Percentage-point change = new rate − old rate. Relative percent change = difference ÷ old rate × 100..

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Formula and worked example

Percentage-point change = new rate − old rate. Relative percent change = difference ÷ old rate × 100.

A rate moving from 5% to 6% rises by 1 percentage point, but by 20% relative to its starting rate. From 20% to 22% is +2 percentage points and +10% relative change.

Why the distinction matters

A fall from 10% to 9% is 1 percentage point, while the relative decrease is 10%. These statements describe different quantities.

Common mistake

Use the original value as the baseline for relative change. A percentage calculation can give a different answer when the denominator changes.

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Sources & methodology

The formulas are displayed so the result can be checked manually. NIST defines the percent symbol as representing 0.01. The UK Office for National Statistics defines a percentage point as the difference between percentages.