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Fundamentals What are Basis Points?
A complete primer on basis points (bps) — what they are, why finance uses them instead of percentages, and how to convert between the two.
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Financial Guides & Articles
Build your financial knowledge with clear, practical explanations of basis points, interest rates, and modern finance concepts.
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Interest Rates How Interest Rates Work
Understand simple vs. compound interest, how banks set rates, and the real cost of borrowing over time.
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Central Banks Central Bank Rate Changes
How Federal Reserve and central bank decisions ripple through the economy — from mortgage rates to savings accounts.
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Loans Basis Points Impact on Loans
See the real dollar impact of a 25 or 50 basis point change on your mortgage, auto loan, and student debt payments.
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Comparison APR vs Interest Rate
Learn the critical difference between APR and nominal interest rate, and why APR is the number that really matters when comparing loans.
APR vs Interest Rate
Understand the key differences between APR and interest rate, and why APR gives you the true cost of borrowing.
Impact of Basis Points on Loans
Understand how small basis point changes in interest rates can significantly affect your loan payments and total cost.
Central Bank Rate Changes
Understand how central bank rate decisions affect the economy, markets, and your personal finances.
How Interest Rates Work
Understand how interest rates work, what influences them, and how they affect your finances.
What are Basis Points?
A complete primer on basis points (bps) — what they are, why finance uses them instead of percentages, and how to convert between the two.
Quick Reference
1 Basis Point
= 0.01% 100 Basis Points
= 1.00% Typical Fed Move
25 bps (0.25%) Put Knowledge Into Practice
Ready to crunch some numbers? Try our free calculators.