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Basis Point Calculator

Basis Point Calculator

Your Shortcut to Accurate Basis Point Calculations.

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What is x bps of y?

PKR
PKR

Example:

How the Basis Point Calculator works?

Enter a value in any of the four fields — decimal, percent, permille, or basis points. The calculator instantly converts between them. In the second card, type an amount and an increment in bps (or choose %/decimal) to see the absolute change.

Why use bps?

Basis points remove confusion between percentage and percentage points. A move of 25 bps is always 0.25 percentage points.

Frequently Asked Questions

What is a basis point?
A basis point (bps) is one hundredth of a percentage point. 1% = 100 bps, 0.01 = 1%, and 1 bps = 0.01%.
Why do we have basis points?
Basis points avoid ambiguity when discussing small rate changes. Saying ‘rates rose 25 bps’ is unambiguous (0.25%), whereas ‘0.25 percent’ can be misheard as 25%.
How to convert basis points to percents?
Divide bps by 100 to get percent. For example, 40 bps = 0.40%. Multiply percent by 100 to get bps.
Where are basis points used?
Commonly in finance: interest rates, fees, bond yields, forex spreads, and fund expense ratios.
What are basis points in mortgages?
Mortgage rate changes are often quoted in bps. A 20 bps increase means the rate rose by 0.20 percentage points.
Can basis points be negative?
Yes. Negative bps represent a decrease. For example, −15 bps on a 6% yield means the yield dropped to 5.85%.
Why do we use basis points?
They give precise, compact communication for small moves and remove ‘percentage point vs percent’ confusion.
How much is 40 basis points?
40 bps = 0.40% = 0.004 in decimal = 4.0‰ (permille).
What is meant by 50 basis points?
It means 0.50 percentage points (0.50%). In decimal that is 0.005, or 5‰ (permille).
How do you calculate basis points for commission?
Commission = Amount × (bps ÷ 10,000). For example, 75 bps on PKR 2,000,000 equals PKR 15,000.
What is 50 basis points in decimal form?
50 bps = 0.005 in decimal form (which is 0.50%).