# How many basis points?

Converts a rate between percent, decimal, basis points (1 bp = 0.01%) and permille (1‰ = 0.1%).

- Page: https://www.acalculator.org/finance/basis-point-calculator
- JSON spec: https://www.acalculator.org/finance/basis-point-calculator.json
- Version: f067accefc13

## Default answer

Example with the default inputs (Percent 1.5%): 1.5% is 150 basis points, 0.015 as a decimal, and 15 per mille.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| percent | Percent | The rate in percent (1.5 means 1.5%). |
| basisPoints | Basis points | The rate in basis points: one basis point is 0.01%, so 100 bp is 1%. |
| decimalValue | Decimal | The rate as a decimal fraction (0.015 is 1.5%). |
| perMille | Permille | The rate per thousand: 1‰ is 0.1%. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| percent | Percent | The rate in percent (1.5 means 1.5%). |
| bp | Basis points | The rate in basis points: one basis point is 0.01%, so 100 bp is 1%. |
| decimal | Decimal | The rate as a decimal fraction (0.015 is 1.5%). |
| permille | Permille | The rate per thousand: 1‰ is 0.1%. |

## Method

1% = 0.01 = 100 bp = 10‰: decimal = % ÷ 100, bp = % × 100, ‰ = % × 10.

## Assumptions

- One basis point is one hundredth of a percent (0.01%). One permille is one tenth of a percent (0.1%).

## Worked examples

1. percent = 1.5% gives decimalValue = 0.015, basisPoints = 150, perMille = 15. Source: Basis point, one one-hundredth of a percentage point: U.S. Securities and Exchange Commission, Investor.gov glossary, "Basis point". https://www.investor.gov/introduction-investing/investing-basics/glossary/basis-point.
2. basisPoints = 25 gives percent = 0.25%, decimalValue = 0.0025, perMille = 2.5. Source: Basis point, one one-hundredth of a percentage point: U.S. Securities and Exchange Commission, Investor.gov glossary, "Basis point". https://www.investor.gov/introduction-investing/investing-basics/glossary/basis-point.
3. decimalValue = 0.015 gives basisPoints = 150, percent = 1.5%. Source: Basis point, one one-hundredth of a percentage point: U.S. Securities and Exchange Commission, Investor.gov glossary, "Basis point". https://www.investor.gov/introduction-investing/investing-basics/glossary/basis-point.
4. basisPoints = 225 gives percent = 2.25%. Source: Basis point, one one-hundredth of a percentage point: U.S. Securities and Exchange Commission, Investor.gov glossary, "Basis point". https://www.investor.gov/introduction-investing/investing-basics/glossary/basis-point.
5. percent = -0.75% gives basisPoints = -75, perMille = -7.5. Source: Basis point, one one-hundredth of a percentage point: U.S. Securities and Exchange Commission, Investor.gov glossary, "Basis point". https://www.investor.gov/introduction-investing/investing-basics/glossary/basis-point.

## FAQ

### What are basis points?

Basis points (bp) are a unit of measurement commonly used in finance to describe small percentages. One basis point equals 0.01% (1/100th of a percent). For example, 100 basis points = 1%, 50 basis points = 0.5%, and 1 basis point = 0.01%. Basis points are frequently used to describe interest rate changes, bond yields, and other financial ratios.

### How do I convert percentage to basis points?

To convert percentage to basis points, multiply the percentage by 100. For example, 1.5% = 1.5 × 100 = 150 basis points. Conversely, to convert basis points to percentage, divide by 100: 150 basis points = 150 ÷ 100 = 1.5%.

### What is the difference between basis points and permille?

Basis points (bp) and permille (‰) are both units for expressing small percentages, but they use different scales. One basis point = 0.01% (1/100th of a percent), while one permille = 0.1% (1/10th of a percent). So 1 permille = 10 basis points. For example, 1.5% = 150 basis points = 15 permille.

### When are basis points commonly used?

Basis points are widely used in finance for: interest rate changes (e.g., 'The Fed raised rates by 25 basis points'), bond yields, credit spreads, investment fees, and other financial ratios where precision is important. They're preferred over percentages when dealing with small changes because they avoid decimal points (e.g., '25 bp' vs '0.25%').

### How do I convert decimal values to basis points?

To convert a decimal value to basis points, multiply by 10,000. For example, 0.015 (decimal) = 0.015 × 10,000 = 150 basis points. This works because 0.015 as a decimal represents 1.5%, and 1.5% = 150 basis points.

### What are some common basis point conversions?

Common conversions include: 1% = 100 bp, 0.5% = 50 bp, 0.25% = 25 bp, 0.1% = 10 bp, 0.01% = 1 bp. For larger values: 5% = 500 bp, 10% = 1,000 bp. These conversions are essential for understanding interest rate changes, bond yields, and financial spreads.

### Why use basis points instead of percentages?

Basis points are preferred in finance for several reasons: they avoid decimal points when discussing small changes (e.g., '25 bp' vs '0.25%'), they're more precise for small movements, they're the standard unit in financial markets, and they reduce confusion when dealing with very small percentage changes.

### How do I calculate basis points for interest rate spreads?

To calculate basis points for an interest rate spread, subtract the lower rate from the higher rate and convert to basis points. For example, if a corporate bond yields 5.25% and a Treasury bond yields 3.00%, the spread is 5.25% - 3.00% = 2.25% = 225 basis points.

## Sources

- Basis point, one one-hundredth of a percentage point: U.S. Securities and Exchange Commission, Investor.gov glossary, "Basis point". https://www.investor.gov/introduction-investing/investing-basics/glossary/basis-point