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
- Does the Golden Cross Work? We Tested 72 Strategies
- Should You Buy Stocks After Good Earnings? Post-Earnings Drift, Tested
- Lesson 22: Statistically Significant Doesn't Mean Important: Effect Size
Related terms
All glossary terms. Educational content, not financial advice.