Basis Points Increase Calculator

Calculate the percentage increase when a change is expressed in basis points. Basis points (bps) are commonly used in finance to denote small percentage changes.

Input Parameters

Calculation Results

Calculation Formula

New Value = Original Value × (1 + Δ/10000)

Where:
- Original Value: The initial value before the change
- Δ: Basis Points Change (bps) divided by 10,000
- 10000: Conversion factor from basis points to percentage

Basis Points Increase Calculator Usage Guide

Learn how to use the Basis Points Increase Calculator calculator and its working principles

How to Use This Calculator

  1. Enter the Original Value - this is the value before the change occurs.
  2. Enter the Basis Points Change (bps) - this is the amount of change expressed in basis points. Remember that 1% = 100 basis points.
  3. Click the Calculate button to see the results.
  4. The calculator will show you the New Value after applying the basis points change and the Percentage Change in percentage form.

Understanding Basis Points

Basis points are a unit of measure used in finance to denote small percentage changes. One basis point is equal to 0.01% (1/100th of 1%). This is why we divide the basis points change by 10,000 in the calculation.

Example Usage

Suppose you have an investment worth $10,000, and it increases by 25 basis points:

  • Original Value: $10,000
  • Basis Points Change: 25 bps
  • New Value: $10,000 × (1 + 25/10,000) = $10,025
  • Percentage Change: 0.25%

This calculator is particularly useful in finance for calculating interest rate changes, bond yield changes, and other small percentage adjustments where precision is important.