Percentage Points Calculator
Compare two percentages the right way: points and relative change.
Good to know. Going from 2% to 3% is one percentage point, and also a 50% rise. Headlines prefer the second.
How it works
In plain words
Percentage points are the simple difference between two percentages. The relative change divides that difference by the first percentage.
The formula
points = B − A relative change = (B − A) ÷ A × 100 basis points = points × 100
Worked example
An interest rate goes from 4% to 5%. That is a rise of 1 percentage point (100 basis points), but a relative increase of 25%.
Sources
No outside data or rates: this is plain arithmetic.
5 automated tests check its answers on every change.
About the percentage points calculator
When two numbers are both percentages, there are two ways to describe the gap between them, and mixing them up is one of the most common mistakes in news reports.
Percentage points are the plain difference. If an interest rate goes from 4% to 5%, it rose by 1 percentage point. If a party’s poll share falls from 32% to 28%, it fell by 4 points.
Relative change compares the difference with the starting percentage. The same interest rate rise from 4% to 5% is a 25% increase in the rate, because 1 is a quarter of 4. For a borrower, that relative figure is often the more meaningful one: your interest bill really does go up by a quarter.
Both numbers are correct. They just answer different questions. A headline that says "unemployment up 50%" might describe a change from 2% to 3%, which is 1 percentage point. Reporting both is the honest thing to do, which is why this calculator shows both.
Finance often uses basis points, which are hundredths of a percentage point. A rise of 0.25 points is 25 basis points.
Questions people ask
What is a percentage point?
The arithmetic difference between two percentages. From 4% to 5% is 1 percentage point.
Why is 4% to 5% a 25% increase?
Because the rise of 1 is 25% of the starting value of 4. That is the relative change, not the point change.
What is a basis point?
One hundredth of a percentage point. 0.25 percentage points is 25 basis points. Banks and markets use them for small rate changes.