What this calculator does
A basis point, often written as "bp" and pronounced "bip", is a standard unit in finance equal to one hundredth of one percent, used because interest rates, bond yields and fees are often quoted in changes far too small to describe conveniently in whole percentage points. This basis points calculator converts between basis points and a percentage, both directions.
The definition of a basis point is fixed and never changes: 1 basis point (bp) always equals 0.01%, or 0.0001 as a decimal. That makes 50 basis points exactly 0.5%, 100 basis points exactly 1%, and 5 basis points exactly 0.05%, regardless of what is being measured.
The formula
Multiply basis points by 0.01 to get a percentage, or multiply a percentage by 100 to get basis points. The decimal form shown alongside is the percentage divided by 100 again, the same figure used directly in interest-rate maths.
| Term | Meaning |
|---|---|
| Basis point (bp) | One hundredth of one percent: 0.01%, or 0.0001 as a decimal. |
| Percentage | Basis points × 0.01. |
| Decimal form | The percentage expressed as a fraction of 1, used directly in most financial formulas. |
The inputs explained
| Field | What to enter |
|---|---|
| Value | The number to convert, in whichever unit you selected below. |
| Convert | Choose whether you are converting basis points into a percentage, or a percentage into basis points. |
When to use it
Reading a central bank rate change
Interest rate announcements are commonly reported in basis points, such as a 25 basis point rise; converting that to 0.25% makes it directly comparable to a rate expressed as a percentage.
Comparing management or brokerage fees
Fund and account fees are sometimes quoted in basis points per year, so converting to a percentage puts them on the same scale as a headline interest rate.
Working through a bond yield calculation
Bond pricing formulas often move in basis points for small yield changes; converting to a decimal is the form needed to plug directly into a present-value or duration calculation.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
Common basis point values converted to a percentage
A range of commonly quoted basis point figures and their percentage equivalents.
| Basis points | Percentage | Decimal form |
|---|---|---|
| 5 bp | 0.0500% | 0.000500 |
| 10 bp | 0.1000% | 0.001000 |
| 25 bp | 0.2500% | 0.002500 |
| 50 bp | 0.5000% | 0.005000 |
| 75 bp | 0.7500% | 0.007500 |
| 100 bp | 1.000% | 0.010000 |
Common percentage values converted to basis points
A range of percentage figures and their basis point equivalents.
| Percentage | Basis points | Decimal form |
|---|---|---|
| 0.1% | 10.00 bp | 0.001000 |
| 0.25% | 25.00 bp | 0.002500 |
| 0.5% | 50.00 bp | 0.005000 |
| 1% | 100.00 bp | 0.010000 |
| 2% | 200.00 bp | 0.020000 |
| 5% | 500.00 bp | 0.050000 |
Questions
What is 50 basis points as a percentage?
50 basis points is exactly 0.5%, since each basis point equals 0.01%.
What is 100 basis points as a percentage?
100 basis points is exactly 1%, which is why "100 bps" is often used interchangeably with "one percentage point" in finance.
Why use basis points instead of just percentages?
Basis points avoid ambiguity when discussing a change to a percentage figure. Saying a rate rose "from 5% by 1%" is unclear (to 6%, or by a tenth to 5.05%?), whereas "rose by 100 basis points" unambiguously means a full percentage point.
Is a basis point always a fixed amount of money?
No. A basis point is a fixed relative unit, always 0.01% of whatever it is applied to. Its value in dollar terms depends entirely on the size of the amount it is calculated against, such as a loan balance or a fund’s assets.
To apply a converted rate to an actual amount, see the simple interest calculator or the compound interest calculator if either exists for the figure you are working with.