Percentage Point Calculator
The percentage point calculator is a simple tool to find the percentage point difference between two percentages. In addition, you can also learn what is a percentage point and how to calculate the percentage of points.
Read further - we answer the following questions:
- What is a percentage point (percent vs. percentage point)?
- How do you calculate percentage points?
- What is the difference between percentage points and percent?
- How do you convert basis points into percentages?
If you need a refresher on the notions utilized here, visit the following tools:
What is a percentage point?
A percentage point (or percent point) is the unit for the arithmetic difference of two percentages. For example, climbing from 20 percent to 25 percent indicates a 5 percentage points increase, but a 25-percent increase (or percentage difference) the given values. You may often find the unit written in its complete form (point or points) or with a percentage points abbreviation, typically p.p. or pp.
We can also state absolute change in terms of percentage points, for example, the value of the indicator in period 2 minus that in period 1.
🔎 Go to the percentage difference calculator to learn more about this type of percentage computations.
How do you calculate percentage points?
Calculating percentage points is a straightforward mathematical operation: you need to take the two percentages' arithmetic differences. Let's take a simple example: the unemployment rate was 5 percent in 2019 and 7 percent in 2020.
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Highlight the percentages you need to compare:
2019 (Percentage #1): 5%
2020 (Percentage #2): 7% -
Subtract Percentage #1 from Percentage #2:
Percentage points = Percentage #2 - Percentage #1 = 7 - 5 = 2. -
Add the unit (percentage point) and the direction of the change (increase if positive, decrease if negative, or simply state as difference) to the number:
There was a 2 percentage point increase in the unemployment rate from 2019 to 2020. Or alternatively, there is a 2 percentage difference between unemployment rates in 2019 to 2020.
FAQs
- What is the difference between percentage points and percent?
- Both percentage points vs. percent are frequently used, but it's essential to distinguish the two concepts as they mean different things. Suppose that the unemployment rate increased from 4% to 6% - it's a 50 percent increase but a 2 percentage point increase.The case is similar with percentage points vs. basis points. Since basis point is simply a different unit for percentage, percentage points and basis points are two completely different concepts.
- Are points the same as percentages?
- No. Even though it is easy to confuse their name, they refer to two different concepts. While percentage points indicate the absolute change between two percentages (Percentage B - Percentage A), the percentage refers to a relative change ((Percentage B - Percentage A) / Percentage A).
- What percentage is 150 basis points?
- You can determine the basis points as a percentage in decimal form by multiplying the basis points by 0.0001 (150 × 0.0001 = 0.015). To obtain its final percentage, you need to multiply the decimal by 100 (0.015 × 100 = 1.5%) or divide the basis point by 100 (150 / 100 = 1.5%). Therefore, 150 basis points are equivalent to 1.5%.
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