Convert a decimal or percentage value into basis points (bps).
2. Basis Points to Percentage Converter
Convert basis points into a percentage value.
3. Rate Spread Calculator (Spread in BPS)
Find the difference between two rates in basis points.
4. Financial Impact of BPS
Calculate the cost or gain based on a principal amount and basis points.
Understanding Basis Points (BPS) and Excel Formulas
A basis point (often abbreviated as bps or "bips") is a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%. This unit is essential for discussing small changes in financial instruments where "percentage points" would be too broad.
How to Calculate Basis Points in Excel
When working in Microsoft Excel, you can use specific formulas to convert between percentages and basis points. Since Excel treats percentages as decimals (e.g., 1% is stored as 0.01), you must adjust your multipliers accordingly.
Convert Percentage to BPS:=Cell_Reference * 10000
Convert BPS to Percentage:=Cell_Reference / 10000
Find Spread between two Percentages in BPS:=(New_Rate - Old_Rate) * 10000
Realistic Examples
Example 1: Mortgage Rates
If a mortgage rate increases from 6.50% to 6.75%, the increase is 0.25 percentage points. In financial terms, we say the rate increased by 25 basis points.
Example 2: Investment Management Fees
If an exchange-traded fund (ETF) has an expense ratio of 15 bps, you are paying 0.15% of your investment value annually in fees. On a $10,000 investment, this equals $15.00 per year.
Common Conversions Table
Basis Points (BPS)
Percentage (%)
Decimal Value
1 bps
0.01%
0.0001
10 bps
0.10%
0.001
50 bps
0.50%
0.005
100 bps
1.00%
0.01
500 bps
5.00%
0.05
function calculatePercToBps() {
var perc = parseFloat(document.getElementById('percToBpsInput').value);
var resultDiv = document.getElementById('bpsResult1');
if (isNaN(perc)) {
resultDiv.innerHTML = "Please enter a valid percentage.";
resultDiv.style.color = "red";
return;
}
var bps = (perc * 100).toFixed(2);
resultDiv.innerHTML = perc + "% = " + bps + " Basis Points";
resultDiv.style.color = "#333";
}
function calculateBpsToPerc() {
var bps = parseFloat(document.getElementById('bpsToPercInput').value);
var resultDiv = document.getElementById('bpsResult2');
if (isNaN(bps)) {
resultDiv.innerHTML = "Please enter valid basis points.";
resultDiv.style.color = "red";
return;
}
var perc = (bps / 100).toFixed(4);
resultDiv.innerHTML = bps + " bps = " + perc + "%";
resultDiv.style.color = "#333";
}
function calculateSpread() {
var start = parseFloat(document.getElementById('startRate').value);
var end = parseFloat(document.getElementById('endRate').value);
var resultDiv = document.getElementById('bpsResult3');
if (isNaN(start) || isNaN(end)) {
resultDiv.innerHTML = "Please enter both rates.";
resultDiv.style.color = "red";
return;
}
var diff = (end – start) * 100;
var bps = diff.toFixed(2);
var label = (diff >= 0) ? "Increase" : "Decrease";
resultDiv.innerHTML = label + " of " + Math.abs(bps) + " Basis Points";
resultDiv.style.color = "#333";
}
function calculateImpact() {
var amount = parseFloat(document.getElementById('principalAmount').value);
var bps = parseFloat(document.getElementById('bpsImpact').value);
var resultDiv = document.getElementById('bpsResult4');
if (isNaN(amount) || isNaN(bps)) {
resultDiv.innerHTML = "Please enter both amount and BPS.";
resultDiv.style.color = "red";
return;
}
// 1 bps = 0.0001 multiplier
var impactValue = amount * (bps / 10000);
resultDiv.innerHTML = bps + " bps on $" + amount.toLocaleString() + " = $" + impactValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultDiv.style.color = "#333";
}