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How Percentage is different from Percentile?

Numbers surround humans. From academic scores to shopping discounts, percentiles and percentages impact our daily lives. Thus far, these two terms have confused a range of people. Students often ask, is achieving 85 per cent on exams but ranking in the 70th percentile the same? The answer is not at all. Percentage calculates how much, whereas percentile compares one’s position. To get crystal clear details of these concepts, read this article, which provides insights and examples. Understanding these terms is crucial for business analysts, students, and parents to track the growth of their kids. 

How Percentage is different from Percentile

What is Percentage?

A percentage is defined as a way to express 100 as a fraction. It calculates how much from the total. The symbol used to denote percentage is %. 

Formulae for percentage = (obtained marks divided by total marks) × 100

Example: 

If a student scores 45 out of 50, it is written as (45 divided by 50) × 100 = 90%. A percentage helps compare values and is used widely in different domains, including finance, statistics, and education. 

What is Percentile?

A measure that compares a given value below which percentage data falls. In the ranking system, we use percentile, denoted as xth, where x is the number. Instead of measuring exact values, it ranks points of data. 

Formulae for percentile = (Number of values under given score divided by total number of values) × 100

Example: 

If a student achieves 75 marks out of 100, his percentile score is calculated as (75 divided by 100) × 100 = 75th percentile. It shows that this student’s position is better than 75% of the class. 

Difference Percentage And Percentile

Feature 

Percentile

Percentage

Definition

A fraction of 100

Measures ranking among given values

Calculation 

(Obtained marks divided by total marks) × 100

(Number of values under given score divided by total number of values) × 100

Symbol 

%

nth

Purpose 

Calculate the exact proportion

Calculate the relative position in a set of data

Usage 

Used in growth rates, discounts, and marks

Used in exams, analytics, and surveys

Real-Life Examples

The following are a few examples of percentages and percentiles:

  • 10% of the annual revenue growth of a company means the earnings of this company increase up to 10% from the passing year. 
  • A 20% discount on any product means you purchase it at a price.

To measure growth charts, doctors use percentile. However, if a doctor mentions the 70th percentile of height, it shows that your child’s height is better than 70% of kids.

  • For admission, some universities require an entrance test. Scoring the 90th percentile on these tests means you perform better than 90 per cent of students. 

Why Is This Difference Important?

Learning this difference is essential if you are working in various fields:

  • Students use % to measure their marks
  • While universities use percentiles to draw comparisons among applicants.
  • Doctors and nurses always use percentiles to make growth charts.
  • Also, by using percentiles, doctors analyse the statistics of patient’s health. 
  • To indicate consumer trends, market analysts use percentile
  • Analyzing percentages is necessary to measure a company’s revenue.

When to Use Percentage and Percentile 

There is the following condition which clarifies where to use percentile and percentage:

Situation 

Use Percentile 

Use Percentage

Growth charts

University rankings

Income growth

Exam scores

Discounts 

Conclusion

To conclude, both percentile and percentage are valuable concepts yet distinct. Both are used widely in finance, healthcare, academics, and business. In addition, every field of individuals must know their differences for data interpretation and better decision-making. After reading this article, I hope you will never be confused about these terms again.