Basis point calculator
This basis point calculator converts bps and percent in both directions. Example: 25 bps = 0.25%, because one basis point is one hundredth of a percentage point.
Example: Calculation: Basis points → percent · Basis points (bps) 25 → Result: 25 bps = 0.25%. Source: Wikipedia – Basis point. Updated: .
How it is calculated
A basis point (bp or bps) is one hundredth of a percentage point. 100 bps make one percentage point, and 1 bp equals 0.01% or a factor of 0.0001. Lenders, bond markets and fund managers use it because small differences in rates, yields, margins and fees can then be quoted without decimals and without ambiguity.
Four ways to calculate
The calculator converts basis points to percent (bps ÷ 100), percent to basis points (percent × 100), gives the difference between two rates in bps, and turns an amount plus a bps figure into a money value (amount × bps ÷ 10,000).
Example
If a rate moves from 3.5% to 3.75%, the difference is 0.25 percentage points, which is 25 bps. In relative terms the rate rose by 7.14% (0.25 ÷ 3.5). On an amount of 250,000, 35 bps works out as 250,000 × 0.0035 = 875.
- “Rates rise by 25 basis points” means 0.25 percentage points, not 25%.
- Negative bps values mean cuts; negative rates can be entered as well.
Frequently asked questions
How many percent is one basis point?
One basis point is 0.01%. So 25 bps = 0.25% and 100 bps = 1%.
What is the difference between percentage points and percent?
Percentage points are the absolute gap between two percentages: from 3.5% to 3.75% is 0.25 percentage points, or 25 bps. Percent describes the relative change: the same step is a 7.14% rise in the rate.
How do I get the money value of a bps move?
Amount × bps ÷ 10,000. For 250,000 and 35 bps that gives 875; it is a yearly figure only if the rate is an annual rate.
Sources and legal basis
- Wikipedia – Basis point
- Wikipedia – Basispunkt
- Hull, J. C.: Options, Futures, and Other Derivatives – chapter on interest rates (basis point = 0.01%)
As of: · Editorial policy
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