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Jodi Beggs

Why Percents and Percentage Points Are Cousins, But Not Twins

By , About.com GuideDecember 5, 2011

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The distinction between percents and percentage points (or lack thereof) is easily on my list of top 5 pet peeves, so I very much appreciate this comic. This distinction is really important when writing or reading things that have to do with numbers, and the distinction can be shown via a simple example:

Let's say that unemployment is at 10%. (A reasonable assumption nowadays, sadly.) If I were to say that "unemployment decreased by 4 percentage points," this would mean that unemployment is now at 6%. Simple, right? On the other hand, if I were to say that "unemployment decreased by 4 percent," this would mean the following:

10% = 0.1
4% = 0.04
decrease = 4% of 10% = 0.04*0.1 = 0.004
new unemployment = 0.1 - 0.004 = 0.096 = 9.6%

6 percent and 9.6 percent aren't even close to the same thing, so understanding the difference between percents an percentage points is pretty significant. Let's just hope that the people writing about the numbers know how to make this distinction properly as well.

Comments

December 6, 2011 at 12:52 am
(1) Desalegn says:

It is an interesting mathematical interpretation.
Thank u in advance.
With best regards!

December 6, 2011 at 1:45 am
(2) uma shankar says:

I never knew of this! Thanks!

December 6, 2011 at 5:49 am
(3) Arpit Saxena says:

Thanks for the share! Its easy to comprehend and amazing.

December 10, 2011 at 3:21 pm
(4) Bashir Sokoto says:

This is indeed verry relevant to all students and business peoples. Thanks

December 11, 2011 at 6:00 am
(5) NeverTellAName says:

So x percentage points == 10 times x percents?

December 13, 2011 at 6:08 am
(6) Amos Fadeni says:

Many thanks for this clarification.
It is very easy not to understand the slightly perceptible difference.

December 19, 2011 at 10:38 pm
(7) RAJ says:

Good.This calculation i came to know through u.Thanx.

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