Finance and accounting
Percentage point difference calculator
Difference between two percentages in percentage points and basis points, alongside the relative percentage change.
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Result
Method and limits
When a rate moves from one percentage to another, the arithmetic difference is measured in percentage points; the relative change divides that difference by the starting percentage. One percentage point is 100 basis points.
Difference = B − A percentage points = 100 × (B − A) basis points
Relative change = (B − A) / |A| × 100%Assumptions and limits
- Enter percentages as numbers (5 for 5%).
- The relative change is undefined when the first percentage is 0.
Worked example
An interest rate rising from 4% to 5% is up 1 percentage point (100 basis points), which is a 25% relative increase.
References
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