Basis Points Calculator

What are Basis Points?

Basis points (bps) are a unit of measure used in finance to denote percentage changes, with 1 basis point equal to 0.01% or 1/100th of 1%. This is commonly used for interest rates, loan fees, and other financial calculations where precise percentage changes are needed.

How to Use This Calculator

1. Enter the Base Value - this is the original amount in dollars that will be affected by the basis points.
2. Enter the Basis Points - this is the percentage value expressed in basis points. For example, enter 100 for 100 basis points, which equals 1%.
3. Click the Calculate button to see the dollar amount represented by those basis points on the base value.

Example Usage

Example 1: If you have a $1,000,000 loan with an interest rate increase of 25 basis points, the additional interest cost would be:

$1,000,000 × (25 / 10000) = $2,500

Example 2: If you're calculating a fee based on a percentage of a trade amount:

If a trade is worth $50,000 and you're being charged 20 basis points as a fee:

$50,000 × (20 / 10000) = $100

Key Applications

• Calculating interest rate changes on loans and investments
• Determining loan origination fees
• Computing trading fees and commission rates
• Understanding yield curve movements
• Calculating bond yield changes