About

A basis point equals 0.01%, or 0.0001 in decimal form. Financial professionals use basis points to express small rate changes because percentage language creates ambiguity. Saying a rate "increased by 1%" is unclear: does that mean 1 percentage point added, or 1% of the current rate? Basis points eliminate that confusion. A 50 basis point move on a $500,000 bond portfolio changes its value by $2,500. Misstating that figure by even 10 bps on institutional volumes causes measurable loss.

This calculator handles three operations: computing the dollar or unit change from a given number of basis points applied to a value, finding the basis point difference between two rates, and converting freely between percentage and basis points. It assumes linear, non-compounding application of basis points. For compounding scenarios (e.g., daily accrual on notional), adjust inputs accordingly. Pro tip: central bank rate decisions are typically communicated in 25 bps increments. A "double hike" is 50 bps.

Formulas

The fundamental identity that defines basis points:

1 bp = 1100 % = 0.0001

To compute the monetary change from basis points applied to a value:

Change = V × bp × 0.0001

To find the basis point difference between two rates:

bp = ( R₂ − R₁ ) × 100

To convert percentage to basis points and vice versa:

bp = P × 100

P = bp100

Where V = principal or notional value, bp = number of basis points, R₁ = initial rate in %, R₂ = final rate in %, P = percentage value.

Reference Data

Basis Points (bps)	Percentage (%)	Decimal	Common Name	Impact on $100,000
1	0.01%	0.0001	One tick	$10.00
5	0.05%	0.0005	Five ticks	$50.00
10	0.10%	0.0010	Ten ticks	$100.00
25	0.25%	0.0025	Quarter point	$250.00
50	0.50%	0.0050	Half point	$500.00
75	0.75%	0.0075	Three-quarter point	$750.00
100	1.00%	0.0100	Full point (1%)	$1,000.00
150	1.50%	0.0150	One and a half points	$1,500.00
200	2.00%	0.0200	Two points	$2,000.00
250	2.50%	0.0250	Two and a half points	$2,500.00
300	3.00%	0.0300	Three points	$3,000.00
500	5.00%	0.0500	Five points	$5,000.00
750	7.50%	0.0750	Seven and a half points	$7,500.00
1000	10.00%	0.1000	Ten points	$10,000.00
2500	25.00%	0.2500	Twenty-five points	$25,000.00
5000	50.00%	0.5000	Fifty points	$50,000.00
10000	100.00%	1.0000	Full (100%)	$100,000.00

Frequently Asked Questions

Percentages create ambiguity when discussing changes to a rate that is itself a percentage. If a bond yield moves from 3.00% to 3.50%, saying it "rose 0.50%" could be confused with a 0.50% relative increase (which would be 3.015%). Stating 50 bps is unambiguous. This convention is standard across fixed income, derivatives, and central bank communications.

On a $300,000 30-year fixed mortgage, a 25 bps rate increase (e.g., from 6.50% to 6.75%) adds roughly $50 to the monthly payment and approximately $18,000 over the loan's lifetime. The impact scales linearly with principal but non-linearly with duration due to amortization.

A percentage point is 100 times larger than a basis point. Moving from 5% to 6% is a 1 percentage point increase, which equals 100 bps. The formula is: bp = percentage points × 100.

Yes. A negative basis point change indicates a rate decrease. If the Federal Reserve cuts rates by 25 bps, that is −25 bps. This calculator handles negative values correctly in all three modes. On a $1,000,000 notional, −25 bps represents a $2,500 reduction.

No. This tool applies basis points as a simple (non-compounding) linear multiplier: Change = V × bp × 0.0001. For instruments with daily or continuous compounding (e.g., overnight indexed swaps), the actual impact will be slightly higher. The deviation grows with duration and rate magnitude.

A permyriad (‰‰ or per ten thousand) is mathematically identical to a basis point. The term "basis point" is the financial convention; "permyriad" is the mathematical term. Both equal 0.01% or 10⁻⁴. Some regulatory documents use the permyriad notation.