Percentage Points Calculator
Politicians and journalists conflate «percentage points» with «percent», often deliberately. Type two rates and see both the absolute (pp) and relative (%) change.
This is one of the UK's most misunderstood numerical conventions — and the BoE, financial press, and ONS publish in percentage points constantly. The calculator above shows both readings simultaneously. Worked examples below.
How it works. Absolute change in pp = new − old. Relative change = ((new − old) ÷ old) × 100. Always state which one you mean.
Worked examples
BoE base rate 5.00% → 5.25%: 0.25 percentage points; 5% relative increase.
Mortgage rate 4% → 6%: 2 percentage points; 50% relative increase.
Tax rate 20% → 22%: 2 percentage points; 10% relative increase.
VAT 17.5% → 20% (the 2011 UK rise): 2.5 percentage points; 14.3% relative.
Inflation 2% → 11% (UK 2022 peak): 9 percentage points; 450% relative.
Sources:
Bank of England base rate history · ONS Inflation explained
· retrieved 2026-05-12.
Frequently asked questions
Why does this distinction matter?
Because conflating the two distorts the size of changes. A 'small 2% rise' in a tax rate is actually a 10% relative jump in tax. The Bank of England, ONS and HMRC always quote rate changes in percentage points; advertisers often quote them as percent changes to make moves look bigger.
What's the formula?
Absolute (pp) = new rate − old rate. Relative (%) = ((new − old) ÷ old) × 100.
How does the BoE quote rate moves?
Always in percentage points (or basis points). A 25 basis point rise = 0.25 percentage points.
Are basis points the same as percentage points?
1 basis point = 0.01 percentage point. So 100 basis points = 1 percentage point. Used in fixed-income markets for precision.