Use this free Basis Points (BPS) Calculator to convert basis points (BPS) to percentage points, convert percentage point changes to basis points, and calculate the difference between two interest rates. Enter your values to get a result with the formula and an explanation.
This tool is useful for comparing loan rates, bond yields, investment fees, and other percentage based financial measures.
How to Use the Basis Points (BPS) Calculator
- Select the type of calculation you want to perform.
- Enter the basis point amount, percentage point change, or original and new interest rates.
- Review the result in basis points and percentage point form.
- Check whether the rate increased, decreased, or remained unchanged.
- Read the formula and examples below if you want to understand the calculation.
Enter interest rates as percentage values. For example, enter 4.75 for 4.75%.
Basis Points (BPS) Calculator Formula
The calculation depends on the values you have.
Convert Basis Points to Percentage Points
Percentage point equivalent = Basis points ÷ 100
Example:
50 ÷ 100 = 0.50 percentage point
Convert Percentage Points to Basis Points
Basis points = Percentage point change × 100
Example:
0.25 × 100 = 25 basis points
Calculate the Difference Between Two Rates
Basis point change = (New rate − Original rate) × 100
Example:
Original rate = 4.50%
New rate = 4.75%
(4.75 − 4.50) × 100 = 25 basis points
The rate increased by 25 basis points.
Basis Points Conversion Table
| Basis points | Percentage point equivalent |
|---|---|
| 1 BPS | 0.01% |
| 5 BPS | 0.05% |
| 10 BPS | 0.10% |
| 25 BPS | 0.25% |
| 50 BPS | 0.50% |
| 75 BPS | 0.75% |
| 100 BPS | 1.00% |
| 150 BPS | 1.50% |
| 200 BPS | 2.00% |
| 500 BPS | 5.00% |
| 1,000 BPS | 10.00% |
Examples of Basis Points (BPS) Calculations
Example 1: Convert 25 Basis Points to a Percentage
Divide 25 by 100.
25 ÷ 100 = 0.25 percentage point
Example 2: Convert 0.50 Percentage Point to Basis Points
Multiply 0.50 by 100.
0.50 × 100 = 50 basis points
Example 3: Calculate an Interest Rate Increase
An interest rate changes from 5.00% to 5.25%.
(5.25 − 5.00) × 100 = 25 basis points
The increase is 25 basis points.
Example 4: Calculate an Interest Rate Decrease
An interest rate changes from 5.50% to 5.20%.
(5.20 − 5.50) × 100 = −30 basis points
The rate decreased by 30 basis points.
How Are Basis Points Used in Finance?
Loans and Mortgages
Basis points can describe changes in borrowing rates. The effect on monthly payments depends on the loan amount, repayment term, rate structure, and lender terms.
Bonds and Yields
Investors use basis points to describe changes in bond yields and yield spreads.
Investment Fees
Basis points can help compare small differences between fund expense ratios and investment management fees.
Financial Market Rates
Market commentary often uses basis points to describe changes in benchmark interest rates. Individual financial products may not change by the same amount.
Basis Points vs Percentage Points
A basis point is a unit of measurement equal to 0.01 percentage point.
For example, an interest rate rising from 4.00% to 4.50% has increased by 0.50 percentage point, or 50 basis points.
The relative percentage increase is different:
(4.50 − 4.00) ÷ 4.00 × 100 = 12.5%
Therefore, the rate increased by 50 basis points but increased by 12.5% relative to its original value.
Frequently Asked Questions
How many basis points equal 1%?
One percentage point equals 100 basis points.
What is 10 basis points as a percentage?
Ten basis points equal 0.10 percentage point.
How do I calculate basis points between two interest rates?
Subtract the original rate from the new rate and multiply by 100. For example, a change from 4.00% to 4.25% equals 25 basis points.
Can basis point changes be negative?
Yes. A negative result means the new rate is lower than the original rate.
Is a basis point the same as a percentage change?
No. Basis points normally express an absolute difference between percentage rates. Relative percentage change measures the difference compared with the original value.