How to calculate percentage points

Written by michael keenan | 13/05/2017
How to calculate percentage points
A calculator can help you figure percentage points. (Hemera Technologies/ Images)

Percentage points refer to an increase or decrease of a percentage rather than an increase or decrease of a raw number. For example, an increase from 10 to 11 would be an increase of 10 per cent. However, an increase from 10 per cent to 11 per cent is an increase of just 1 percentage point. Each percentage point can be subdivided into 100 basis points, For example, an increase of 0.5 percentage points would also equal and increase of 50 basis points.

Enter the final percentage amount in the calculator. For example, if interest rates rose from 4.7 per cent to 5.3 per cent, enter the final amount of "5.3" into the calculator.

Push the subtraction sign on the calculator.

Enter the original percentage. In this example, enter "4.7."

Push the equals sign to find the difference as measured in percentage points. Completing this example, when you push equals sign, your calculator will display "0.6," meaning the amount increased by 0.6 percentage points.

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