How to Convert Percentage to Basis Point in Excel – Step by Step Basis Point Calculator

Introduction to Basis Points

What is a Basis Point?

A basis point is a unit used to describe a percentage change.

1 basis point = 0.01%

So, 100 basis points = 1%

Basis Points in Finance

Knowing about basis points is important in the finance world for a variety of reasons:

• It can be used to explain small changes in interest rate, bond yields, loan terms, etc.
• For a large sum of money, even a tiny change in interest rate can mean a large amount.
• It is useful for comparing small changes like a change of less than 1%.

 

Creating Basis Point Calculator

You can easily convert percentages to basis points by following the steps below –

STEP 1: Create two columns for percentage value and basis point.

STEP 2: Type the percentage value in column A.

STEP 3: Enter the formula

=A2*10000

This formula will convert 2.5% into basis points by multiplying the number by 10,000.

STEP 4: Press ‘Enter’, and you’ll have the percentage value from A2 displayed as basis points in your chosen cell.

STEP 5: You can change the format by right-clicking on the output cell and selecting Format Cells. In the dialog box, go  to the ‘Number’ tab, choose ‘Custom’, and type 0 bps.

Using these steps, you can easily convert a percentage to basis points and also add the text bps after the value.

 

FAQs

How to convert percentages into bps in Excel?

To convert a percentage into basis points (bps) in Excel, use the formula (Percentage*100)*100. For a direct calculation, write your percentage in a cell, say A1, and in the next cell, type =(A1*100)*100. Press Enter, and the cell will display the value in basis points. This multiplies your percentage by 10,000, following the basis point conversion ratio.

Is 100 basis points equivalent to 1%?

1 Basis point is 1/100 th of 1%, i.e., 0.01%. So, 100 basis points is equal to 1%.

How to use basis points in financial models?

You need to convert basis points to percentages to be able to use them in financial models. TO convert it, you need to divide basis point by 10,000.

Percenatge = Basis Point/10000

Convert 2% to bps.

Two percent (2%) is equivalent to 200 basis points (bps). To convert a percentage to basis points, multiply the percentage by 100. Thus, 2% multiplied by 100 gives us 200 bps.

How many bps are in 1%?

There are 100 basis points (bps) in 1%. To elaborate, since each basis point is one-hundredth of a percentage point, multiplying 1% by 100 gives us the total of 100 bps.