How this calculator works
One basis point is one hundredth of a percentage point. This is an absolute rate difference: moving from 4% to 4.25% adds 25 basis points. The portion modes multiply a base by the decimal rate or rearrange that relationship. Signed amounts and rates are allowed.
Formula
1 bp = 0.01% = 0.1 permille = 0.0001. Amount = base × decimal rate; base = amount/rate; rate = amount/base.
Worked example
25 basis points equals 0.25%, 2.5 permille or 0.0025 as a decimal. Applied to $10,000, that rate represents $25. A reduction of 50 basis points is -0.5 percentage points.
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Frequently asked questions
Are basis points a relative percentage change?
No. A change from 2% to 3% is 100 basis points and a 50% relative increase.
Can the rate be negative?
Yes. Negative basis points describe a decrease in a quoted rate.
Does this calculate bond price sensitivity?
No. Multiplying a base by a rate is not a duration or DV01 valuation.