Percent vs. Percentage Points

Also known as: percentage points, relative change, absolute change.

A percentage point is the difference between two percentages; a percent change is that difference relative to the starting value.

Synthetic dataExamples on this page use synthetic data created for illustration.

Definition

A percentage point is the arithmetic difference between two percentages; a percent change is that difference relative to the starting value. Moving from 4% to 5% is a rise of one percentage point but of twenty-five percent.

In plain terms

Both describe the same movement, and both are correct, but they sound very different. Reports slide between them without warning, and a headline can use whichever sounds more dramatic. A small base makes the relative change large (a rise from 0.2% to 0.4% is “double”), while the absolute change may be negligible.

Always say which is meant, show the starting value, and be careful with arithmetic on percentages: a 50% fall followed by a 50% rise does not return to the start.

Example

MovementPercentage pointsPercent change
Conversion rate 4% → 5%+1.0 pp+25%
Share of voice 24.0% → 21.4% (see Share of Voice)−2.6 pp−10.8%
Rate 0.2% → 0.4%+0.2 pp+100%
Value 100 → 50 → 75 (down 50%, then up 50%)—−25% overall

A headline “conversion up 25%” and a headline “conversion up one point” describe the same event.

Common misunderstandings

  • “Percent and percentage points are the same.” They are different quantities; mixing them up changes the size of the claim.
  • “A big percent change means a big change.” Not when the starting value is tiny.
  • “Percentages can be averaged to get the overall percentage.” Only if the groups are the same size; otherwise weight by group size.

References

  1. David Spiegelhalter. The Art of Statistics: How to Learn from Data . Basic Books, 2019. ISBN 978-1541618510.
  2. Darrell Huff. How to Lie with Statistics . W. W. Norton, 1993. ISBN 978-0393310726.