# Basis Point Calculator

Convert a percentage to basis points, decimal values, and permilles.

## Your calculation result will show up here.

## Here's your conversion:

## What is basis points (BPS)?

A basis point is a unit of measure commonly used in finance to express percentage changes in
interest rates, financial instruments, or other financial metrics. One basis point is
equivalent to one-hundredth of a percentage point, or 0.01%.

In finance, basis points
are frequently employed to discuss changes in interest rates, bond yields, and credit
spreads. For instance, if the interest rate on a loan increases by 25 basis points, it means
that the rate has risen by 0.25 percentage points.

Industries such as banking, fixed
income trading, and investment management heavily rely on basis points for precision in
expressing small changes in interest rates or financial returns. This unit of measure is
particularly useful when dealing with large sums of money or when analyzing subtle shifts in
financial markets.

To convert a percentage to basis points, simply multiply the
percentage by 100. For example, if an interest rate increases by 0.5%, it can be expressed
as a 50 basis point (0.5% * 100 = 50 basis points) change. This conversion facilitates
clearer communication and analysis in the financial domain.

## Embed this calculator

Put this calculator on your website to increase visitor engagement and get more social shares!