Quick answer: Percentage points describe the absolute difference between two percentages. Percentage change describes the relative difference compared with the starting percentage.
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Understand the method
To find percentage points, subtract the old percentage from the new percentage. To find relative percentage change, divide that difference by the original percentage.
These expressions sound similar but answer different questions. Reports about interest rates, conversion rates and survey results should say which one they use.
Worked example
A conversion rate rises from 4% to 5%. That is an increase of 1 percentage point, but a 25% relative increase because (5−4) ÷ 4 = 0.25.
What people often get wrong
Calling a one-percentage-point increase a 1% increase would materially understate the relative change in this example.
A practical way to use this
Include both numbers when communicating a small rate change to non-technical readers.
Frequently asked question
Is a move from 40% to 50% a 10% increase? It is 10 percentage points, or a 25% relative increase.
Percentage points are not percentage change
If a metric rises from 20% to 25%, it increases by 5 percentage points. Relative to the starting 20%, that is a 25% increase (5 ÷ 20 × 100). The figures are not interchangeable.
Apply it to your own task
This distinction is useful when discussing conversion rates, survey shares or any measurement that is already a percentage. Identify clearly whether you mean the arithmetic difference in points or the relative change.
Related reading
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