Basis Point (BPS) Calculator

Use this Basis Point (BPS) Calculator to convert between basis points, percent, decimal values, and permille. You can also estimate the simple dollar value represented by a basis-point change on a specified amount.

Basis Point Conversion

One basis point is one-hundredth of one percentage point.

1 basis point = 0.01%

100 basis points = 1%

1 basis point = 0.0001 in decimal form

1 basis point = 0.1‰

The main conversion formulas are:

Percent = basis points ÷ 100

Basis points = percent × 100

Decimal = basis points ÷ 10,000

Basis points = decimal × 10,000

Permille = basis points ÷ 10

Value of a Basis-Point Change

To estimate the simple dollar value represented by a basis-point rate:

Change amount = amount × (basis points ÷ 10,000)

This calculation applies the rate change directly to the entered amount. It does not calculate interest over time, loan payments, bond-price changes, or investment returns.

Worked Example

Suppose an interest rate increases by 40 basis points.

Convert the change to percentage points:

40 ÷ 100 = 0.40%

Convert it to decimal form:

40 ÷ 10,000 = 0.004

If the reference amount is $50,000:

$50,000 × 0.004 = $200

So, 40 basis points equals 0.40 percentage points, and 40 basis points of $50,000 represents a simple amount of $200.

Basis Points vs. Percent Change

Basis points describe an absolute difference between percentage rates, not the relative percentage change.

For example, if an interest rate increases from 4% to 5%:

Change = 1 percentage point = 100 basis points

The relative increase, however, is:

(5% − 4%) ÷ 4% × 100 = 25%

Therefore, saying a rate increased by 100 basis points is not the same as saying it increased by 100%.

Important Notes

• Basis points are commonly used to express small changes in interest rates, bond yields, credit spreads, mortgage rates, and investment fees.
• 100 basis points equals 1 percentage point, not 100%.
• The money-value calculation is only a direct percentage-of-amount estimate.
• For a loan or mortgage, a basis-point rate change does not translate directly into the same change in total interest or monthly payment because term, amortization, compounding, and payment timing also matter.
• For bonds, the calculator does not estimate how a yield change affects market price, duration, or convexity.
• The currency selector changes the displayed currency symbol only and does not perform exchange-rate conversion.

Sources

• Investor.gov — Basis Point Definition
• Federal Reserve — Basis Point Glossary Definition