Basis Point Calculator
Convert percentages and decimals to basis points and vice-versa using the bps calculator below.
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How to Convert Percentage to Basis Points
Percentages and basis points (bps) are two commonly used measures of change. Percentages are a proportion out of 100, while basis points are a proportion out of 10,000. Although they seem similar, they are not the same thing.
To convert percentages to basis points, you need to multiply the percentage by 100. The percentage to basis point formula is:
basis points = percentage × 100
For example, let’s convert 0.5% to basis points.
0.5 × 100 = 50 bps
So, 0.5% is equivalent to 50 basis points.
How to Convert Basis Points to a Percentage
To convert percentages to basis points, you need to do the opposite and divide by 100.
percentage = basis points ÷ 100
For example, let’s convert 25 basis points to a percentage.
25 basis points ÷ 100 = 0.25%
Thus, 25 basis points are equal to a 0.25% change.
Basis Point Conversion Chart
Frequently Asked Questions
What are basis points?
The word basis is derived from the base move between percentages. This is sometimes also referred to as the spread between two different interest rates.
Why do we use basis points?
Since the changes in some financial values and percentages are usually very small, they are measured in a fraction of a percent. Thus, basis points help describe movements in interest rates and other values that are smaller than one percent.
How much is one basis point?
One basis point is equal to 1/100th of 1%, or 0.01%. In decimal form, one basis point is equal to 0.0001.
How much is 100 basis points?
Since one basis point is 1/100th of 1%, 100 basis points are equal to 1%. In decimal form, 100 basis points are equal to 0.01.