How it's calculated
percent = basis points ÷ 100
basis points = bps value (1 bp = 0.01%), percent = result. Reverse: bps = percent × 100.
Common values
| Basis points (bps) | Percent |
|---|---|
| 1 | 0.01% |
| 25 | 0.25% |
| 50 | 0.50% |
| 100 | 1.00% |
| 250 | 2.50% |
Common questions
What is a basis point?
A basis point is one hundredth of a percent, so 100 basis points equal 1 percent.
Why do banks use basis points?
They avoid confusion when describing small rate changes, since a move from 5% to 5.25% is clearly 25 basis points rather than an ambiguous percent change.