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A unit for changes in a percentage rate. One basis point is 0.01 percentage points.
Save conceptBasis points make small changes in rates unambiguous. A change of 25 basis points is 0.25 percentage points, not a 25% relative increase. The starting rate matters when calculating a relative change.
A rate moving from 4.00% to 4.25% rises by 25 basis points.
How the rate and repayment period change a fixed-rate loan.
Total repaid: 11,322.74 currency units.
Fixed nominal annual rate, monthly repayments and monthly interest. No fees, taxes, insurance or payment delays. Existing fixed-rate loans keep their agreed rate; this explores a new loan.