Basis Point Increase Calculator

Formula

The formula to calculate the Basis Point Increase (BPI) is:

\[ \text{BPI} = \text{CBP} - \text{OBP} \]

Where:

\(\text{BPI}\) is the Basis Point Increase (basis points).
\(\text{CBP}\) is the Current Basis Points.
\(\text{OBP}\) is the Original Basis Points.

What is Basis Point Increase?

The Basis Point Increase (BPI) measures the change in basis points between two values. Basis points are a unit of measure commonly used in finance to describe the percentage change in value or interest rates. One basis point is equivalent to 0.01%. This calculation helps in understanding shifts in rates, yields, or other financial metrics.

Example Calculation

Consider an example where:

Current Basis Points (CBP): 150
Original Basis Points (OBP): 120

Using the formula to calculate the Basis Point Increase:

\[ \text{BPI} = 150 - 120 = 30 \text{ basis points} \]

This means that the basis point increase for this example is 30 basis points.