How many basis points is 1%?

1% equals 100 basis points (bps). One basis point equals 0.01%, or 0.0001 in decimal form. Divide basis points by 100 to get percent, and divide by 10,000 to get the decimal you multiply by principal.

What does a 25 or 50 basis point rate hike mean?

A 25 bps change equals 0.25%, and a 50 bps change equals 0.50%. On a $1,000,000 commercial loan, a 50 bps increase adds $5,000 in annual interest cost.

How do you calculate the dollar value of basis points on a portfolio or loan?

Multiply the principal or AUM amount by (BPS / 10,000). A 15 bps ETF expense ratio on a $500,000 portfolio costs $500,000 × 0.0015 = $750 per year. A 25 bps fee on $1,000,000 costs $2,500 per year.

Why do financial analysts use basis points instead of percentages?

Basis points remove the ambiguity in rate changes. Moving from a 2.00% yield to 2.50% is a 25% relative increase, but it is unambiguously a 50 basis point increase. Quoting basis points tells you the percentage-point change, not the percent change in the rate.

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InvestingBeginner1 min

Basis Point Calculator

Instantly convert basis points (bps) to percentages, decimals, and exact dollar values on loans, bond yields, or AUM fees. Includes a quick BPS reference chart.

basis point
bps
bond yield
expense ratio
interest rate
AUM fee

Basis Points (BPS)

Convert BPS to percentage and calculate value.

Basis Points

Principal Amount

Percentage

0.50%

Rate Equivalent

Monetary Value

$5,000

Impact on Principal

Decimal

0.0050

Multiplier

Impact of Basis Points

Monetary value of different BPS levels on the principal.

Key Takeaway: Value ($) increases from $1,000 (10 bps) to $10,000 (100 bps), a net change of +$9,000 (+900.0%).

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Methodology

Formula & methodology

Basis points remove the ambiguity in rate changes. A move from 2.00% to 2.50% is 50 basis points, which is a 0.50 percentage-point change and a 25% relative increase. Analysts quote the basis-point change.

Basis point conversion chart on $1,000,000
Basis Points (BPS)	Percentage (%)	Decimal	Dollar Value on $1,000,000
1	0.01%	0.0001	$100
5	0.05%	0.0005	$500
10	0.10%	0.0010	$1,000
25	0.25%	0.0025	$2,500
50	0.50%	0.0050	$5,000
75	0.75%	0.0075	$7,500
100	1.00%	0.0100	$10,000
250	2.50%	0.0250	$25,000

BPS to percentage

Percentage (%) = Basis Points / 100

Basis Points: 1 bps = 0.01 percentage point = 0.0001 in decimal form.

Percentage to BPS

Basis Points = Percentage (%) × 100

Percentage: Enter 1 for 1%, which equals 100 basis points.

Dollar impact on principal

Monetary Value ($) = Principal × (Basis Points / 10,000)

Principal: Loan balance, bond face, or portfolio value the rate applies to.

Worked example: 50 basis points on $1,000,000

Percentage = 50 / 100 = 0.50%.
Decimal = 50 / 10,000 = 0.0050.
Dollar impact = $1,000,000 × 0.0050 = $5,000 a year.
A 15 bps ETF expense ratio on a $500,000 portfolio is $500,000 × (15 / 10,000) = $750 a year.

50 basis points on $1,000,000 is 0.50%, or $5,000. Fifteen basis points on $500,000 is $750.

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Guide

How to read this calculator

Helpful tips

1Save your calculations by bookmarking this page with your inputs in the URL.
2Try different scenarios to understand how changes affect your results.
3Share this calculator with friends or family who might find it useful.
4Use the results as a starting point for conversations with financial advisors.
5Bookmark this page and revisit quarterly to track your progress toward goals.

How to Use the Basis Point Calculator

One basis point is 0.01%, or 1/100 of a percent, or 0.0001 in decimal form. Percentage = Basis Points / 100. Dollar impact = Principal × (Basis Points / 10,000).

Step-by-Step Instructions

Enter the basis points. A 25 bps move is 0.25%, and a 50 bps move is 0.50%.

Enter the principal, loan balance, or assets under management the basis points apply to.

The reference chart below prices each row on $1,000,000.

Read the percentage, the decimal multiplier, and the dollar value. Dollar value is principal times basis points divided by 10,000.

When to Use This Calculator

When working with small percentage changes in interest rates or yields.

basis pointbpsbond yieldexpense ratiointerest rate

Who Benefits Most

•Traders
•Investors
•Financial Analysts

1 min

Beginner

Understanding Your Results

Percentage, decimal, and dollars are three views of the same basis-point input.

What Each Result Means

Percentage

Basis points divided by 100.

Interpretation: 100 bps is 1.00%. 25 bps is 0.25%.

Decimal

Basis points divided by 10,000.

Interpretation: Multiply this decimal by principal to get dollars.

Dollar value

Annual rate impact if the basis points apply for a full year and the principal does not change.

Interpretation: This is not a monthly payment and it does not compound unless you extend it yourself.

What to Do With Your Results

If You are comparing two quoted yields:

Subtract the yields in percent and multiply by 100 to state the gap in basis points.

Important Limitations:

• The dollar figure is a simple annual impact. It does not amortize a loan or compound a fee.
• Bond price sensitivity also depends on duration. A basis-point yield change is not, by itself, the change in bond price.

Real-World Example: A 50 basis point rate hike