Percentage Point vs Percent Change: How to Show Both in Excel

Percentage point vs percent change is the difference between "how far did the rate move?" and "how big was that move compared with where it started?". If a conversion rate rises from 12% to 15%, it is up 3 percentage points and up 25 percent. Both are correct, but they answer different questions. This guide shows both formulas in Excel, side by side on the same data, and how to label them so nobody misreads your report.

Percentage points vs percent change at a glance#

Percentage points measure an absolute gap; percent change measures a relative one.

What is a percentage point?#

A percentage point is the unit for the difference between two percentages. You find it by simple subtraction: 15% minus 12% is 3 percentage points. It is often shortened to "pp" or "points".

Use points whenever both numbers are already percentages, such as a conversion rate, an interest rate, a market share or a profit margin. Points tell the reader how far the rate itself moved.

In finance, small moves are often given in basis points. One basis point is 0.01 percentage points, so 100 basis points make 1 percentage point. A loan rate that rises from 4.00% to 4.25% is up 0.25 points, or 25 basis points. That is why rate changes are a standard topic in Excel skills for banking.

What is percent change?#

Percent change compares the change with the starting value:

percent change = (new - old) / old

For the same rate, (15% − 12%) / 12% = 0.25, or 25%. It answers "how much bigger is the rate now, relative to before?". A 25% higher conversion rate means 25% more conversions from the same number of visitors, which is often what a manager really wants to know.

Percent change also works on any amount, such as revenue or units sold. Percentage points do not: you can't say sales rose "by 3 points". Our percent change formula guide covers percent change on amounts in detail.

Both on the same data in Excel#

Here is a small table with rates stored as real percentages (12% is the value 0.12, formatted as a percentage):

Column D, percentage points. In D2, type the formula below and fill it down:

=(C2-B2)*100

The subtraction gives 0.03, and multiplying by 100 turns it into 3, a number of points. The last row returns 0.25, which the one-decimal format shows as +0.3; use two decimals, +0.00" pp", when moves are that small. For basis points, multiply by 10000 instead.

Column E, percent change. In E2, type:

=(C2-B2)/B2

Format it as a percentage. =C2/B2-1 gives the same answer. Fill down for 25%, -25%, 25% and 6.25%.

The table shows why one number isn't enough. Three rows have the same 25% percent change, but the moves are 3, 2 and 10 points. And the loan rate's small 0.25-point move is still a 6.25% relative rise, which matters on a large balance.

If your rates were typed as whole numbers, such as 12 and 15 rather than 12% and 15%, =C2-B2 already gives points. Don't multiply by 100 again, or you'll get 300.

How to label the results so nobody misreads them#

The number format is where most confusion starts. If B2 and C2 are formatted as percentages and you type =C2-B2, Excel shows 3.00%. A reader will take that as a 3% change, when it is really a 3-point change and a 25% percent change.

Use a custom number format instead. Select column D, press Ctrl+1 (Mac: ⌘1), choose Custom, and type:

+0.0" pp";-0.0" pp";0.0" pp"

The three sections set the look for positive, negative and zero results, and the text in quotes adds "pp" without changing the value. For column E, use +0.0%;-0.0%;0.0% so increases show a plus sign.

For a report or a chart label, put both in one cell:

=TEXT((C2-B2)*100,"+0.0;-0.0")&" pp ("&TEXT((C2-B2)/B2,"+0%;-0%")&")"

This returns +3.0 pp (+25%). TEXT turns each number into formatted text, and & joins the pieces. The result is text, so use it for display only and keep the numbers in their own columns for calculations.

When to use percentage points#

Use percentage points when:

• Both values are rates or shares, such as conversion, churn, market share or margin.
• You compare against a target in the same unit. "Margin is 2 points below target" is clearer than a percent of a percent.
• The base rate is small. A move from 0.1% to 0.3% is a 200% rise, which sounds dramatic, but it is only 0.2 points. Points keep it in proportion.
• You report interest rates, where points and basis points are the norm.

When to use percent change#

Use percent change when:

• The values are amounts, such as revenue, costs, visitors or units. This is the only option for amounts.
• The relative effect matters. A conversion rate 25% higher means 25% more sales from the same traffic.
• You compare growth across items of different sizes, such as regions with very different starting values. Our guide to percent change vs percent difference covers the related case where neither value is the "old" one.

Common mistakes#

1. Saying "up 3%" for a 3-point move. It is ambiguous at best. Say "up 3 percentage points" or "up 3 pp".
2. Leaving the % format on a points result. 0.03 shown as 3.00% looks like a percent change. Multiply by 100 and use a "pp" format.
3. Dividing by the wrong value. Percent change divides by the old value, not the new one.
4. #DIV/0! when the old rate is 0. Percent change from zero isn't defined. Use =IFERROR((C2-B2)/B2,"n/a") and report the points instead.
5. Averaging percent changes. The average of several percent changes isn't the overall change. Work it out from the totals.
6. Mixing up storage. Check whether rates are stored as 0.12 or 12 before you multiply by 100.

For the basics of percentages in Excel, see how to calculate a percentage and percentage of total.

Our recommendation#

For rates, shares and margins, lead with percentage points and add the percent change in brackets: "+3.0 pp (+25%)". Points show the real size of the move; the percent change shows how big it is relative to the start. For amounts such as sales or costs, use percent change only. In every case, label the unit in the column header and the number format, so "pp" and "%" can never be confused.

Practise it#

Try the exercise on this page to calculate a change in percentage points. Then practise percent change in a live spreadsheet, where you build increase and decrease formulas and the sheet checks each one instantly. To check your overall level, take the Excel level test.