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Percentage and percentage point

A percentage means a hundredth and they are used to measure a share of something. The percentage point, on the other hand, is used when comparing percentages to each other or when referring to percentages of certain percentages.

A percentage is a hundredth. For example, 25 percent is 25 hundredths, or one quarter. Ten percent is ten hundredths, or one tenth.

Percentage points, on the other hand, refer to percentages that are already presented. They are used, for example, when talking about changes in political party support. For example, the support of a political party may rise from 10 percent in the previous poll to 15 percent in the current poll. In this case, it is said that the support has increased by 5 percentage points. If measured in percentages, the support in this case would have increased by as much as 50%.

Examples of percentages and percentage points:

Wages were increased by 5 percent.

The political party's support is now 8 percent. In the previous survey, the support was 10 percent. The political party's support has thus decreased by two percentage points (from 10 percent to 8 percent).

9% of the world's population lives in Europe. Of these, one percentage point lives in Germany. 11% of the European population lives in Germany.

Inflation rose from 2 percent to 3 percent. Inflation therefore rose by one percentage point.

The interest rate on the loan is now 2.5 percent, while it was 3.5 percent a year ago. The interest rate has decreased by one percentage point.

The tax rate will increase from 30% to 32%, i.e. two percentage points.

Author:

Arkikoodi

Sources and additional information:

Wikipedia: Percentage

Wikipedia: Percentage point

Britannica: Percentage

Published: 20.11.2024

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