Basis Point Calculator
One basis point is one-hundredth of a percent — 25 bps = 0.25%. Finance talks in bps because “rates rose half a percent from 5%” is ambiguous (5.5% or 5.025%?); “rose 50 bps” never is.
1 basis point = 0.01% = 0.0001. A 25 bps Fed move is 0.25%; on a $400,000 mortgage balance, 25 bps of rate is $1,000 a year in interest.
- 1 bps0.01%
- 25 bps0.25%
- 100 bps1.00%
- 25 bps on $400,000$1,000/yr
bps ÷ 100 = percent; bps ÷ 10,000 = decimal.
Quick conversion table
| Basis points | Percent | Decimal | On $100,000/yr |
|---|---|---|---|
| 1 bps | 0.01% | 0.0001 | $10 |
| 5 bps | 0.05% | 0.0005 | $50 |
| 10 bps | 0.10% | 0.001 | $100 |
| 25 bps | 0.25% | 0.0025 | $250 |
| 50 bps | 0.50% | 0.005 | $500 |
| 100 bps | 1.00% | 0.01 | $1,000 |
| 250 bps | 2.50% | 0.025 | $2,500 |
Where you’ll meet bps: Fed rate decisions (usually 25 or 50 bps), fund expense ratios (an “80 bps fund” charges 0.80%/yr), bond yield moves, and loan pricing spreads. The expense-ratio use is the sneaky one — 80 bps sounds tiny and compounds into five figures over a career.
Frequently asked questions
What is a basis point?
One hundredth of a percentage point: 1 bps = 0.01% = 0.0001. It exists to remove ambiguity when discussing changes in rates.
How much is 50 basis points?
0.50% — half a percentage point. On a $300,000 loan balance, a 50 bps rate change is about $1,500 a year in interest.
Why use basis points instead of percent?
Because 'a 1% increase on a 4% rate' could mean 5% or 4.04%. '100 bps' can only mean the rate went to 5%.
How do I convert basis points to a percentage?
Divide by 100. 75 bps = 0.75%. To get the decimal for math, divide by 10,000: 75 bps = 0.0075.
Sources & methodology
Sources: NumberBench methodology.
Results update as you type and are general estimates, not financial advice.