Difference between percentage and percentile

What is the difference between percentage and percentile?

Both percentage and percentile are used to express data points in relation to a whole, but they serve different purposes. Here’s a breakdown to understand the key differences:

Percentage:

• Represents a portion out of 100: A percentage is a numerical value expressed as a fraction of 100. For example, 50% represents 50 out of every 100 units.
• Indicates a specific value: Percentages tell you the exact value within a dataset. If you score 80% on a test, you got 80 out of 100 possible points.
• Wide range of applications: Percentages are used in various situations, from expressing discounts (20% off) to battery life (75% remaining).

Percentile:

• Represents the position in a ranked list: A percentile indicates the percentage of values in a dataset that fall below a specific value. For example, a score at the 75th percentile means you scored higher than 75% of the people who took the test.
• Indicates relative position: Percentiles don’t give you the exact value, but rather your relative standing compared to others.
• Useful for comparisons: Percentiles are helpful for comparing your performance to a group. Knowing you’re at the 90th percentile in a class tells you, you scored higher than 90% of your classmates.

Example

Here’s an analogy to illustrate the difference:

Imagine a class of 100 students.

• Percentage: If a student scores 80%, they got 80 out of 100 questions correct (specific value).
• Percentile: If a student scores at the 75th percentile, they scored higher than 75 out of the 100 students (relative position).

In essence

• Percentages tell you what a value is (specific amount).
• Percentiles tell you where a value falls within a set (relative position).

When to use which

• Use percentages when you need to express a specific value relative to a whole (e.g., exam scores, discounts).
• Use percentiles when you want to compare a value to a ranked list and understand its relative position (e.g., class rankings, salary percentiles).

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Reference: Khan Acedemy

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