Basis Point Calculator
Convert basis points (bps) to a percentage and a decimal. One basis point is one hundredth of a percent (0.01%), so it's the standard way to talk about small changes in interest rates, yields and fees. Enter a number of basis points to see the equivalent percentage and decimal value.
Formula
Percent = Basis Points ÷ 100
- 1 basis point (bp) = 0.01% = 0.0001 in decimal form.
- To get a percentage, divide the basis points by 100; to get a decimal, divide by 10,000.
- 100 basis points = 1%, so a rate moving 'up 50 bps' means up half a percent.
- Basis points avoid ambiguity — 'a 1% increase on a 4% rate' is unclear, but 'a 25 bp increase' is exact.
Convert 75 basis points
Inputs
- Basis Points: 75
75 ÷ 100 = 0.75%, and 75 ÷ 10,000 = 0.0075. So a 75 bp rate cut lowers a rate by 0.75 percentage points.
Frequently asked questions
What is a basis point?
A basis point is one hundredth of a percent (0.01%). It's used to describe small changes in interest rates, bond yields and fees precisely.
How many basis points are in 1%?
There are 100 basis points in 1%. So 50 bps is 0.5% and 200 bps is 2%.
How do I convert basis points to a percentage?
Divide the number of basis points by 100. For example, 75 bps ÷ 100 = 0.75%.
Why use basis points instead of percentages?
They remove confusion when talking about changes in a percentage. Saying a rate rose by 25 basis points is unambiguous, whereas 'rose by 1%' could mean different things.