Convert basis points to percent and decimals, compare rate changes, and work out what a basis-point move costs on a loan or investment.
Annual cost change = amount × change in basis points / 10,000.
percent
How to use this tool
Type a value and say whether it is in basis points, percent or decimal form.
The headline percent is shown with its basis-point and decimal equivalents, so a central-bank or bond-market figure translates instantly.
Enter an amount and a rate change in basis points to see the annual and monthly cost change on that amount.
One basis point is one hundredth of a percent, so 100 basis points is exactly 1 percent.
Formula & worked example
250 basis points is 2.5 percent, or 0.025 as a decimal. A 100-basis-point rise on 200,000 costs 200,000 × 100 / 10,000 = 2,000 per year, about 166.67 per month.
Limitations — read this before you rely on it
Basis points describe a change in a rate, not the rate's level on its own, and the cost figure is a simple annual interest effect: it ignores compounding, fees, amortisation and the day-count basis of a real loan or bond.
Frequently asked questions
100. So 50 basis points is 0.5 percent and 25 basis points is 0.25 percent.
Because they remove ambiguity: a rise from 5 percent to 6 percent is a 1 percentage point rise, a 100-basis-point rise, and a 20 percent relative rise — three different numbers for the same move.
A percentage point is the arithmetic difference between two percentages; a basis point is one hundredth of a percentage point. A move from 2 percent to 3 percent is 1 percentage point, or 100 basis points.
Both are used: one basis point, but basis points calculator is the common search phrase for the same tool, and this page covers both.
No. It is the straight annual interest effect of the rate change on the amount entered. A real loan payment change also depends on term, balance and amortisation.