Basis Point Calculator IT
Convert basis points to a percentage (and back), and apply a basis‑point change to an interest rate.
How it works
Enter a number of basis points to see the equivalent percentage and decimal. Optionally enter a starting interest rate to see the new rate after the basis‑point change is applied.
Frequently asked questions
What is a basis point?
One basis point is one hundredth of a percentage point — 0.01%, or 0.0001 as a decimal. 100 basis points equal 1%.
How do I convert basis points to a percentage?
Divide the basis points by 100. For example, 50 basis points is 50 ÷ 100 = 0.50%.
How do I convert a percentage to basis points?
Multiply the percentage by 100. A 0.25% change is 0.25 × 100 = 25 basis points.
Why do people use basis points instead of percentages?
They remove ambiguity about whether a change is absolute or relative. "Up 100 basis points" clearly means one percentage point.
How many basis points are in 1%?
Exactly 100 basis points equal one percent.
Where are basis points used?
In interest-rate decisions, bond yields, loan margins, mortgage rates and fund fees — anywhere small rate differences need to be precise.
What a basis point is
A basis point (bp, or "bip") is one hundredth of a percentage point: 1 basis point = 0.01% = 0.0001. So 100 basis points equal 1%, and 25 basis points equal 0.25%. This calculator converts between basis points and percentages in either direction.
Why finance uses basis points
Rates and fees are quoted in basis points to remove ambiguity. Saying a rate "rose 1%" is unclear — does it mean from 5% to 6%, or a 1% relative increase to 5.05%? Saying it rose 100 basis points means exactly one percentage point, with no confusion.
Worked example
If a central bank lifts a rate from 5.00% to 5.25%, that is a 25 basis point increase. A fund charging 0.75% has an expense ratio of 75 basis points. To convert, divide basis points by 100 to get a percentage, or multiply a percentage by 100 to get basis points.
Where you will see them
Basis points are standard in interest-rate announcements, bond yields, loan margins, mortgage pricing and investment fees. Because the differences involved are often small, basis points make those changes precise and easy to compare.
Results are estimates for general guidance in Italy and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.