A basis point calculator is a tool used to calculate the difference between two percentages. It is used to measure the percentage change between two different values or to compare the performance of two different investments.
The basis point calculator has two components: the basis point (bp) and the percentage point (pp). A basis point is equal to 0.01% or 0.0001, while a percentage point is equal to 1%.
For example, a change of 10 bp is equal to a change of 0.1%, while a change of 10 pp is equal to a change of 10%. To calculate a basis point, take the percentage of the difference between two percentages, then divide it by one hundred. For example, if the two percentages are 5% and 6%, the difference is 1%, which is equal to 100 bp.