Basis Point Calculator: Convert bps to Percent and See What a Rate Change Costs
Convert basis points to percent, decimal and per mille, move a rate by bps or measure bps between two rates, and see the change in interest and payments.
How it works
1 basis point (bp) = 0.01% = 0.0001 = 0.1‰ · percent = bps ÷ 100 · bps = percent × 100 = decimal × 10,000 · new rate = old rate + bps ÷ 100 · bps between rates = (new % − old %) × 100 · value on an amount = amount × bps ÷ 10,000 · loan payment = P × r ÷ (1 − (1 + r)^−n), r = annual rate ÷ 12
A basis point is one hundredth of a percentage point: 1 bp = 0.01% = 0.0001. Banks, bond traders and fund managers quote rate moves and fees in basis points because it avoids the confusion between percentage points and percent. If a 4% rate rises to 4.5%, it went up 50 basis points (0.5 percentage points), which is a 12.5% relative increase. Saying “rose 0.5%” could mean either. The calculator works three ways. Convert turns basis points into percent, decimal and per mille (or back), and applies the result to an amount, which is how fees such as a 25 bps fund expense ratio or a 30 bps commission are priced. Move a rate adds or subtracts basis points, for example a 25 bps Fed hike on a 6.5% loan. Bps between two rates measures a move such as a yield change. With a balance and loan term, it also shows the yearly interest difference and the change in the monthly payment of an amortizing loan such as a mortgage. The yearly interest figure is simple interest on the full balance. The monthly payment uses the standard amortization formula with monthly compounding. Unlike the percentage points difference calculator, which compares any two percentages, this page is built around basis points and what a move in bps costs in money.
Worked example
Converting 25 bps: 25 ÷ 100 = 0.25%, or 0.0025 as a decimal and 2.5‰. On $100,000, 25 bps is $100,000 × 0.0025 = $250, for example a yearly 0.25% fee. If instead a 6.50% 30-year loan of $100,000 rises by 25 bps to 6.75%, the yearly interest on the full balance grows by $250 and the monthly payment rises from $632.07 to $648.60, $16.53 more a month.
Sources: Omni Calculator: Basis point (conversions and worked examples) · Wall Street Prep: Cost of debt (rates quoted on loans and bonds)
Frequently asked questions
How many basis points are in 1%?
100. One basis point is 0.01%, so 1% = 100 bps, 0.5% = 50 bps and 0.25% = 25 bps. To turn basis points into percent, divide by 100.
What does a 25 basis point rate hike mean?
The rate rises by 0.25 percentage points, for example from 4.25% to 4.50%. On a $100,000 balance that adds $250 a year in simple interest.
How do I calculate basis points between two rates?
Subtract the old rate from the new one and multiply by 100. A mortgage rate that falls from 3.62% to 3.47% has dropped 15 basis points.
What is 50 basis points of $60,000?
50 bps is 0.5%, so 0.005 × $60,000 = $300. In general, multiply the amount by the basis points and divide by 10,000.
Are basis points the same as percentage points?
They measure the same kind of change on a different scale: 1 percentage point = 100 basis points. Both describe an absolute change in a rate, unlike a percent change, which is relative to the starting rate.
Related calculators
For estimates only. Actual loan payments and fees depend on your lender’s terms, rounding and compounding.