Calculators
Percentage Points vs Percent: The Difference With Real Examples
When a rate goes from 2% to 5%, is that 3% or 150%? Percentage points versus percent change, basis points, ECB rate examples and which one to use when.
By TooleemPublished Facts checked
Short answer
When a number that is already a percentage changes, there are two ways to describe it. The percentage-point change is the simple difference: an interest rate going from 2% to 5% rose by 3 percentage points. The percent change compares that difference with the starting value: 3 ÷ 2 = 150%. Both are correct, but they answer different questions, and mixing them makes small changes sound huge or large ones sound small. When the starting value is zero or negative, only percentage points make sense: the ECB’s deposit rate went from −0.50% to 4.00%, a rise of 4.5 points.
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On this page
Two measures, two questions
Percentage-point change
change (pp) = new rate − old rate
Percent change
change (%) = (new rate − old rate) ÷ old rate × 100
| Change | Percentage points | Percent |
|---|---|---|
| Interest rate 2% → 5% | +3 pp | +150% |
| Poll result 40% → 44% | +4 pp | +10% |
| Unemployment 5.0% → 5.5% | +0.5 pp | +10% |
| VAT 19% → 21% | +2 pp | +10.5% |
| Market share 30% → 24% | −6 pp | −20% |
Notice the second and third rows: a 4-point jump in a poll and a half-point rise in unemployment are both "up 10%". The percentage points tell you how much the share actually moved; the percent tells you how big that move is compared with where it started.
A real series: the ECB deposit rate
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| From | To | Rate | Change (pp) | Change (%) |
|---|---|---|---|---|
| 18 Sep 2019 | 27 Jul 2022 | −0.50% → 0.00% | +0.50 | not meaningful (negative base) |
| 27 Jul 2022 | 20 Sep 2023 | 0.00% → 4.00% | +4.00 | not defined (zero base) |
| 20 Sep 2023 | 11 Jun 2025 | 4.00% → 2.00% | −2.00 | −50% |
| 11 Jun 2025 | 16 Sep 2026 | 2.00% → 2.50% | +0.50 | +25% |
From zero, any rise is "infinitely" large in percent, and from a negative rate the percent change even has the wrong sign. That is why rates are compared in points.
Basis points
1 basis point (bp) = 0.01 percentage point 100 bp = 1 pp
A quarter-point rate cut is 25 basis points. Basis points are used for interest rates, bond yields and fees, where a percent change would be confusing. A fund fee going from 0.20% to 0.15% fell by 5 basis points, or 25%.
Which one to use
- Rates, shares, polls, tax rates: report the percentage-point change, and add the percent change only if it helps.
- Prices, revenue, population, anything that is not itself a percentage: use the percent change; percentage points do not apply.
- Effect on what you pay: a VAT rise from 19% to 21% raises a VAT-inclusive price by 1.68% (121 ÷ 119 − 1), not by 2% or 10.5%.
- Headlines: "risk doubled" can mean 1 in 10,000 became 2 in 10,000. Ask for the starting value before reacting to a percent change.
Common mistake
The most common mistake
Writing "the rate rose by 3%" when it went from 2% to 5%. Readers cannot tell whether it reached 5% or 2.06%. Write "3 percentage points" or "from 2% to 5%".
Do the calculation
Percentage Calculator
Work out percent changes, differences and shares in one place, without mixing up the base.
Sources
The figures and rules in this guide come from these documents.
- Key ECB interest ratesEuropean Central BankDeposit facility rate and the dates each change took effect.
Facts checked
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