Basis Point (BPS) Calculator

What Are Basis Points (BPS)?

Basis Points (BPS) are a unit of measurement used in finance to describe small percentage changes. 1 basis point = 0.01% (1/100th of a percent). They are commonly used in interest rates, bond yields, and investment returns to avoid confusion when discussing minor fluctuations.

Why Use Basis Points?

• Precision: Easier to say "25 bps" than "0.25%."
• Clarity: Reduces ambiguity in financial discussions.
• Standardization: Widely accepted in banking, investing, and economics.

How to Calculate Basis Points (BPS)?

Converting between basis points and percentages is simple:

1. Percentage to Basis Points

Multiply the percentage by 100.
Formula: BPS = Percentage × 100

Example:

• 0.25% = 25 bps
• 1% = 100 bps

2. Basis Points to Percentage

Divide the basis points by 100.
Formula: Percentage = BPS/100

Example:

• 50 bps = 0.50%
• 150 bps = 1.50%

Basis Points Conversion Table

Basis Points (bps)	Percentage (%)
1 bps	0.01%
10 bps	0.10%
25 bps	0.25%
50 bps	0.50%
100 bps	1.00%
200 bps	2.00%
500 bps	5.00%

How to Use a BPS Calculator?

A Basis Points Calculator automates conversions between percentages and basis points. Here’s how it works:

1. Percentage to BPS Conversion

• Input: Enter the percentage value (e.g., 0.75%).
• Output: The calculator shows 75 bps.

2. BPS to Percentage Conversion

• Input: Enter the basis points (e.g., 125 bps).
• Output: The calculator displays 1.25%.

Example Use Cases:

• Interest Rates: If a bank increases rates by 50 bps, it means 0.50%.
• Investment Returns: A fund fee of 20 bps equals 0.20%.
• Bond Yields: A yield change of -30 bps means a 0.30% decrease.

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