Basis Point Calculator
Convert basis points to percentages and see what a rate change costs in money.
About the Basis Point Calculator
Convert basis points to percentages or percentages to basis points, and optionally enter an amount such as a loan balance to see what the change is worth in money each year and month.
One basis point (bp) is one hundredth of a percentage point, 0.01%. Rates and fees are quoted in basis points to avoid confusion: a rise from 4% to 4.25% is 25 bps, not 25%.
The formula
1 bp = 0.01% = 0.0001; % = bps ÷ 100
Worked example
A 25 bp rate cut on a 300,000 balance
- 25 bps = 0.25% = 0.0025
- 300,000 × 0.0025 = 750 a year
- About 62.50 a month in simple interest
Things to keep in mind
- The money figure is simple interest on a fixed balance; on a repaying loan the saving shrinks as the balance falls.
Questions people ask
How much is 50 bps?
0.5 percentage points.
What's a 'bip'?
Trader slang for a basis point.
Is a 10% rise in a rate the same as 10 bps?
No. A rate of 5% rising 10% becomes 5.5%, which is 50 bps.