Made simple: What is the difference between percentage and percentile

Have you ever looked at your test scores or a report card and wondered, “What does it mean to be in the 90th percentile?” Or maybe you've calculated the percentage of a discount you’re getting on a shopping day and thought it was the same thing. Well, you’re not alone! While percentage and percentile may sound similar, they are actually very different concepts, and understanding the distinction between the two can make a big difference in how you understand and make sense of information in daily life.
Imagine this: You're trying to figure out whether you excelled in your exam or just passed. The answer may lie in how your results are presented– whether as a percentage or a percentile. From academic scores to business data and personal progress, understanding these numbers can give you a clearer picture of where you stand.
In the world of numbers, these two concepts serve different purposes, and understanding them can help you make better decisions– whether you're measuring academic progress or understanding business performance.

What is a percentage?
A percentage is one of the most common ways to express how much of something exists in relation to a total. It’s a way to measure a part as a fraction of 100, making it easier to compare different quantities. Whether it’s calculating a discount, determining a test score, or figuring out a percentage of a population, percentages help us express proportions in a simple way.
For example, if you have a test with 100 questions and you get 85 of them right, your score is 85%. This means you got 85 out of every 100 questions correct. Essentially, it tells you what portion of the total you’ve achieved.
Percentages are used in many parts of life– business, education, shopping, and even health– because they offer an easy way to understand how much of something there is compared to the whole.

What is a percentile?
While a percentage shows how much of something you have, a percentile is about ranking. It compares your score to others. For example, if you're in the 90th percentile on a test, it means you did better than 90% of others, but it doesn’t tell you the exact percentage of questions you got right. It just shows how you rank compared to everyone else.
Imagine this: You score 80% on a test, but how do you compare to everyone else who took it? That’s where percentiles come in. If you're in the 80th percentile, it means you did better than 80% of the people who took the same test. It helps you see how you rank among the group.
Percentiles are immensely helpful when comparing your performance in standardized tests or large groups. They show how your result ranks compared to others, rather than just showing how much you scored.
Notable differences between percentages and percentiles
Although both percentage and percentile involve values out of 100, they mean different things. A percentage shows how much you got right out of a total– it's about proportions. A percentile, however, tells you how you rank compared to others– it shows how your score compares to the rest. For example, scoring 85% on a test means you got 85% of the questions right while being in the 90th percentile means you did better than 90% of the other test-takers. Percentiles focus on where you stand compared to others, not just your score.

Real-life applications: When do you use percentages vs. percentiles?
Percentages are used all the time in everyday life to show a part of a whole. They're helpful for things like figuring out discounts, grading exams, or measuring performance. For example:
1. In business, a company might say their sales increased by 5%, meaning sales went up by 5% compared to the last period.
2. In health, your body fat percentage shows how much of your body weight is fat, helping track your fitness progress.
Percentiles, on the other hand, are used when you want to compare your performance to a larger group. They're often used in tests to show how you rank among others. For example:
1. In education, a student’s test score might be in the 80th percentile, meaning they scored better than 80% of other students who took the same test.
2. In healthcare, a child’s height might be shown on a growth chart with a percentile. If your child is in the 50th percentile, it means their height is average compared to other kids their age and gender.
In a nutshell, use percentages when you want to know how much of something you have out of a total. They’re helpful in business, health, or school. Use percentiles when you want to see how you compare to others. Percentiles show how you rank in a group, like in test scores, sales, or growth.