Convert basis points
Switch between basis points, percentages, and decimals — the way interest rates, fees, and yields are usually quoted.
- Percentage
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- Decimal
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Percentage: —, Decimal: —
What is a basis point?
A basis point (often shortened to "bps", pronounced "bips") is one hundredth of one percent: 1 bps = 0.01% = 0.0001 as a decimal. It's a small, precise unit used to describe changes that are too fine to state comfortably in whole percentage points.
Why finance uses basis points
Interest rates, fees, and yields often move by fractions of a percent, and "a 0.25 percentage point rise" is easy to misread as a 0.25% relative change. Quoting it as "25 bps" removes the ambiguity, so basis points are the standard unit for central bank rate decisions, bond yields, loan margins, and fund charges.
How to convert basis points to a percentage
Divide the number of basis points by 100. For example, 75 bps ÷ 100 = 0.75%. On the calculator above, use the "From basis points" mode and enter the bps figure to see the percentage and decimal instantly.
How to convert basis points to a decimal
Divide the number of basis points by 10,000. For example, 75 bps ÷ 10,000 = 0.0075. This is the form used in most spreadsheet and pricing formulas.
How to convert a percentage to basis points
Multiply the percentage by 100. For example, 1.5% × 100 = 150 bps. Use the "From percentage" mode to convert a rate you already have as a percentage.
A worked example: a rate rise
If a central bank raises its base rate by 25 bps, that's a 0.25 percentage point increase, or 0.0025 as a decimal. On a loan tracking that rate, the extra annual interest is 0.25% of the outstanding balance.
People also ask
- There are 100 basis points in 1%. So 1 bps is 0.01%, and 50 bps is 0.5%.
- Basis points avoid confusion between a change measured in percentage points and a relative percentage change, and they let small, precise figures (like a 0.05% fee) be stated as a clean whole number — 5 bps.
- Divide by 10,000. For example, 120 bps ÷ 10,000 = 0.012, which is the decimal form used in most interest and pricing calculations.
- It means the yield moved by 0.10 percentage points — for example, from 4.20% to 4.30%, or from 4.20% down to 4.10% if the move is negative.
Money, solved.
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