Basis Points


May 21, 2020

A “basis point” is 1/100th of a percentage point, or 0.01%. In decimal format, one basis point would look like, 0.0001. One basis point would equal $0.10 for every thousand dollars. Ten basis points would equal $1.00 for every thousand dollars of sales. When considering rates, a rate of 1.75% would be 10 basis points less than a rate of 1.85%