Percentage change vs percentage points β the mistake that makes headlines wrong
2026-09-22
If unemployment rises from 4 % to 6 %, it rose two percentage points β and 50 %. Both are true, and choosing the scarier one is how numbers get spun. The same confusion makes people miscalculate discounts, raises and investment returns.
Open the calculator
Percentage change
(new β old) Γ· old Γ 100. From 250 to 300: (300 β 250) Γ· 250 = 20 %. Note the divisor is the starting value; a 20 % rise followed by a 20 % fall does not return to the start (300 Γ 0.8 = 240).
Percentage points
Simple subtraction between two percentages. 15 % β 10 % = 5 points. Use points whenever both numbers are already rates: interest rates, tax rates, poll shares.
Reverse percentage
If a jacket costs $45 after a 10 % discount, the original was 45 Γ· 0.9 = $50 β not 45 + 10 % = $49.50. Divide by (1 + rate) to undo an increase and by (1 β rate) to undo a discount. The calculator's 'A is what % of B' and 'increase' modes handle both directions.