A basis point is equal to one-hundredth of a percentage point. For example, one basis point is equal to 0.01% and 100 basis
points is equal to 1.0%.
Below is a table with some examples showing percentage to basis point conversion. Use this as a guide to help better understand basis points.
Basis Points |
Percentage |
Decimal |
5 |
0.05% |
0.0005 |
10 |
0.10% |
0.0010 |
15 |
0.15% |
0.0015 |
25 |
0.25% |
0.0025 |
30 |
0.30% |
0.0030 |
35 |
0.35% |
0.0035 |
40 |
0.40% |
0.0040 |
45 |
0.45% |
0.0045 |
50 |
0.50% |
0.0050 |
55 |
0.55% |
0.0055 |
60 |
0.60% |
0.0060 |
65 |
0.65% |
0.0065 |
70 |
0.70% |
0.0070 |
75 |
0.75% |
0.0075 |
80 |
0.80% |
0.0080 |
85 |
0.85% |
0.0085 |
90 |
0.90% |
0.0090 |
95 |
0.95% |
0.0095 |
100 |
1.00% |
0.0100 |
We know that .50% = 50 Basis Points or to show as a decimal would be .0050
We know that 1% = 100 Basis Points or to show as a decimal it would be .0100
Example:
Here is one scenario with processing volume of $3000 with discount Rate of .50% (50 basis points)
How much does it cost to process the above amount? .0050 * $3000 = $15
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