Percentage points are the simple difference between two percentages. A rate rising from 10% to 12% is +2 percentage points, but a +20% relative increase.
Formula: pp = New − Old; relative = (New − Old) / Old × 100
Open the full tool: Percentage calculator →
| Old | New | Points | Relative |
|---|---|---|---|
| 5% | 6% | +1 pp | +20% |
| 7.5% | 8% | +0.5 pp | +6.67% |
| 10% | 12% | +2 pp | +20% |
| 13% | 15% | +2 pp | +15.38% |
| 16% | 21% | +5 pp | +31.25% |
| 21% | 16% | −5 pp | −23.81% |
| 25% | 20% | −5 pp | −20% |
| 40% | 50% | +10 pp | +25% |
| 50% | 60% | +10 pp | +20% |
| 3% | 1.5% | −1.5 pp | −50% |
“The rate went up 2%” is ambiguous: it can mean 10% → 12% (+2 pp) or 10% → 10.2% (+2% of the rate). Economists, banks and central banks therefore talk about points whenever the value itself is a rate or share.
Interest rates, vote shares, website conversion, unemployment, inflation. “Conversion rose from 2% to 3%” is +1 pp, but +50% more purchases at the same traffic.
Finance also uses basis points: 1 bp = 0.01 pp. A 25 bp rate hike is +0.25 pp.
The unit for the difference between two percentages: 10% to 12% is 2 percentage points.
Points are the absolute difference between percentages; percent is the relative change. 10% → 12% = +2 pp = +20%.
100: one basis point is 0.01 percentage point.
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