Basis Point Calculator
25 basis points equals 0.25%, so a 4.75% rate becomes 5.00% after a 25 bps increase. This basis point calculator converts between percent, decimal, and basis points, then applies a basis point move to a starting rate when you need to model a hike or cut.
Quick answer
1% equals 100 basis points and 0.01 in decimal form.
Enter decimal rates as fractions of 1. For example, 0.0475 means 4.75%.
What this tells you
- •1% equals 100 basis points and 0.01 in decimal form.
- •25 bps equals 0.25%, which is 0.0025 as a decimal rate.
- •Adding or subtracting basis points changes the rate by percentage points, not by a percent of the rate.
How to Use
- 1Choose Convert rates to switch between percent, decimal, and basis points.
- 2Enter the value and pick the unit you are starting from.
- 3Choose Adjust a rate to apply a basis point increase or decrease to a starting rate.
- 4Enter the starting rate, select its unit, then enter the basis point move.
- 5Calculate to see the equivalent rates or the adjusted rate in all three formats.
How It Works
Formula
1% = 100 bps = 0.01
Percent = basis points ÷ 100
Decimal = percent ÷ 100
Adjusted rate = starting rate ± (basis points ÷ 100)A basis point is one-hundredth of a percentage point. Divide basis points by 100 to convert them to percent, then divide percent by 100 again to convert to decimal form. For rate moves, turn the basis point change into percentage points and add or subtract it from the starting rate.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
Convert 25 basis points
Divide 25 by 100 to get 0.25%. Divide 0.25 by 100 again to get 0.0025 in decimal form.
Add 25 bps to 4.75%
A 25 bps move is 0.25 percentage points, so 4.75% + 0.25% = 5.00%.
Common Basis Point Conversions
| Basis points | Percent | Decimal |
|---|---|---|
| 1 bps | 0.01% | 0.0001 |
| 10 bps | 0.10% | 0.001 |
| 25 bps | 0.25% | 0.0025 |
| 50 bps | 0.50% | 0.005 |
| 100 bps | 1.00% | 0.01 |
| 250 bps | 2.50% | 0.025 |
Rates are shown in percentage points and decimal-rate form. A decimal rate of 0.05 means 5%, not 0.05%.
Common mistakes
- Treating 25 basis points as 25% instead of 0.25%
- Entering 5 as a decimal rate when you mean 5%, since the decimal form for 5% is 0.05
- Applying a basis point move as a percent of the starting rate instead of adding or subtracting percentage points