Concept
Separate percentage points from percentage change
Two extra points and twenty percent more can describe the same movement.
When it fits
- A rate changes and two descriptions of the increase appear to disagree.
When to avoid it
- Relative change from zero is undefined; a different description is needed for that case.
The idea
Subtract rates to obtain a percentage-point difference. Divide that difference by the original rate to obtain relative percentage change. Label the measure instead of leaving the reader to guess which denominator was used.
An example
A rate rising from 10% to 12% rises by 2 percentage points, or 20% relative to its original value.
Check your result
The stated number and its label describe the same calculation.
Keep this limit in mind
- Relative change from zero is undefined; a different description is needed for that case.
Connected ideas
Useful withMultiply successive percentage changes
Evidence and sources
Supports
Relative percentage change divides the change by the original value; subtracting two percentage values instead gives a percentage-point difference.
Relative change is undefined from a zero baseline and can be difficult to interpret with negative baselines.
Prealgebra 2e, 6.2: Solve General Applications of Percent · Percent increase and decrease formula; independently derived application to percentage values