Online Percent Calculator Logo

What are percentage points?

Percentage points (pp) describe the arithmetic difference between two percentages. While "percent" measures a ratio, "percentage points" measure the absolute gap. For example, moving from a 4% interest rate to a 5% rate is a 1 percentage point increase (but a 25% percentage increase).

Formula

Points = New Percentage − Old Percentage

Worked Example

Interest rate rises from 4% to 6%.

  1. Percentage Points: 6 − 4 = 2 pp
  2. Percent Increase: (2 ÷ 4) × 100 = 50%

Result: The rate rose by 2 percentage points.

Common Questions

What are percentage points?What is the difference between percentage points and percent?If interest rates go from 3% to 5%, what is the increase?