# How to Calculate Basis Points?

To calculate basis points, you will need to determine the dollar amount the basis points are going to be based on. Next, multiply the basis points by the dollar amount. See link below for further instructions www.ehow.com
Reference:
How to Calculate Basis Points
In many businesses, particularly within the mortgage industry, basis points, also referred to as BPS (basis point system), are used as a method to calculate commissions into a dollar amount form. BPS also are used to determine any add-ons or deductions... More »
Difficulty: Easy
Source: www.ehow.com
Take the amount of basis points, multiply by .0001, then reverse the calculation and divide by the percent. Hope this helps because it is difficult to put into words.
Q&A Related to "How to Calculate Basis Points"
 Basis points are basically the amount of commission that someone receives after selling an item like a house. Say a real estate agent has a basis point of 25 on a house they sold http://answers.ask.com/Reference/Dictionaries/how_...
 1. Learn how to write basis points. Basis points represent 1 / 100 of 1 percent. Written in decimal form, it reads: .0001. 2. Write out the equation to calculate basis points. Basis http://www.ehow.com/how_6587566_calculate-mortgage...
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 The LIBOR rate varies depending on the length of term, either 3-month, 6-month, or 1-year - right now it vaires from about 2.4% to 3.2% depending on the term. So this loan would cost http://www.askmehelpdesk.com/banking/how-calculate...
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Basis points are basically the amount of commission that someone receives after selling an item like a house. Say a real estate agent has a basis point of 25 on ...
Basis points are basically the amount of commission that someone receives after selling an item like a house. Say a real estate agent has a basis point of 25 on ...
Basis points are basically the amount of commission that someone receives after selling an item like a house. Say a real estate agent has a basis point of 25 on ...