A percentage point is a difference between two percentages. Percentage points represent the changes in an indicator relative to its last standings.

Percentage points are frequently used for macroeconomic metrics like inflation. For instance, the USA’s inflation rate in August 2022 was 8.3%, while in September 2022, it was 8.2%. As a result, we can conclude that inflation changed by 0.1 percentage point. Alternatively, you can use our free online Percentage point Calculator to compute the percentage point.

Applications for the percentage point are numerous and include probability studies, fault/risk analysis, descriptive statistics, and investment forecasts. In addition, many statisticians and analysts prefer to use percentage points rather than percentages when comparing amounts.

Below is an example to show how to calculate percentage points:

**Example 1: Fifty percent (50%) of students at Fremont High School in 2018 were successful on the state-conducted A-level mock exams. Seventy per cent (70%) of students in the same school in 2019 and 72% in 2020 passed the same exams. So what has changed between 2018 and 2019 regarding exam success rates?**

Use the procedures below to calculate the percentage point:

- Highlight the percentages you want to compare. We have 50% (2018) and 70% in this 2019
- The second step is to deduct the lower percentage from the bigger percentage. Exam success rate change = 70 – 50 = 20
- Now add your unit (in percentage points): Exam success rates in 2018 and 2019 differed by 20 percentage points.
- The success rate increased by 20 percentage points in the scenario above.

Using the percentage point calculator, you may compute the percentage difference and percentage points between two values and avoid formulas and time-consuming calculations. It is a handy tool that also produces correct results.

How do I convert the percentage into basis points?

The typical percentage and basis point conversion is one percent to one hundred basis points. So, by multiplying the percentage by 100, we can easily change it into a basis point. Alternatively, you can use a free basis point calculator online.

How do you differentiate percentage points from basis points?

**Percentage Point vs Basis Point:**

- To convert basis points to percentages divide the basis points by 100.
- To convert a percentage to basis points multiplying the percentage point by 100.

One-hundredth of a percentage point is a basis point. So:

One basis point equals 0.01 percentage points, and one percentage point equals 100 basis points.

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