Glossary

Percentage points

The plain difference between two percentages. Going from 2% to 3% is 1 percentage point, even though it is a 50% increase.

In plain English

Percent describes a relative change. Percentage points describe the straight gap between two percentages. They are easy to mix up, sometimes on purpose.

Uncle Gary explains

Uncle Gary's chance of finishing the marathon went from 1% to 2%. He is telling everyone it doubled. Technically true. It went up by one percentage point, which is the more honest way to put it.

Why it matters for your money

We compare strategies with the control group in percentage points, so tiny differences can't be dressed up as big ones.

Where we tested it

Related terms

All glossary terms. Educational content, not financial advice.