Percentage points and percentages
A rate that goes from 4% to 6% is up 2 percentage points, and also up 50%. Learn which is which, and when each is used.
In this room: 2 tasks, 8 questions
- What a percentage point is4 questions
- The percentage change in a rate4 questions
Some figures are already percentages: an interest rate, a discount rate, a share of sales.
- Percentage point
- the plain gap between two percentages, found by taking one from the other
Worked example: a rate goes from 4% to 6%. 6 take away 4 is 2. The rate has risen by 2 percentage points.
Answer the questions below
3 more questions follow in this task.
The same change can also be given as a percentage of the old rate. The method is the one for any percentage change.
- Step 1: find the change in percentage points
- Step 2: divide the change by the old rate
- Step 3: multiply by 100
Worked example: a rate goes from 4% to 6%. The change is 2. 2 ÷ 4 × 100 = 50%. So a rise of 2 percentage points is here a rise of 50%.
The two answers are very different, so always say which one you mean.
Answer the questions below
3 more questions follow in this task.