Percentage Change vs Percentage Points: The Difference Explained

Understand percentage change and percentage-point differences with simple formulas, worked examples, and common reporting mistakes.

Updated October 10, 2026 · MultipleTools Editorial Team

Percentage change and percentage-point change are related, but they answer different questions. Confusing them can make a report sound more dramatic or less clear than the numbers justify. The key is to identify whether you are comparing relative change or subtracting two percentage values.

What percentage points mean

A percentage-point difference is the simple subtraction of one percentage from another. If a rate moves from 20% to 25%, it rises by 5 percentage points. This describes the absolute gap between the two rates.

What percentage change means

Percentage change measures the difference relative to the starting value. Use (new value − old value) ÷ old value × 100. Moving from 20% to 25% is a relative increase of (5 ÷ 20) × 100 = 25%.

A second example

Suppose a conversion rate moves from 4% to 5%. The absolute increase is 1 percentage point, while the relative increase is 25% because one is one quarter of the original 4% rate. Both statements are mathematically correct, but they communicate different comparisons.

Avoid misleading comparisons

Always include the starting and ending values when the distinction could confuse readers. Do not describe a 25% relative increase as a 25-percentage-point increase. In dashboards and reports, label the metric explicitly and use the same definition across periods.

When the starting value is zero

The standard percentage-change formula divides by the old value, so it is undefined when the starting value is zero. In that situation, report the absolute difference or explain the change without claiming a standard percentage increase.

Quick checklist

• Percentage points = new percentage − old percentage.
• Percentage change = (new − old) ÷ old × 100.
• A change from 20% to 25% is +5 percentage points and +25% relative change.
• Relative percentage change is undefined when the starting value is zero.

This guide provides general educational information. Review outputs and follow the requirements of your own workflow before relying on them.