Overdraft Cost Calculator

See what an arranged overdraft really costs at today's rates and what a cheaper route would save. The result updates as you type so you can compare scenarios quickly.

The method

How it is worked out

Cost = balance × ((1 + EAR)^(1/365) − 1) × days + fee
EAR
Equivalent annual rate; compounds daily

Keep in mind

What it leaves out

  • UnarrangedGoing past the limit adds fees and returned-payment charges.
  • Interest-free buffersSome accounts include a small 0% band.

Use the calculator to compare scenarios rather than as a guaranteed forecast.

About the Overdraft Cost Calculator

Work out what your arranged overdraft costs at today's near-40% rates and what a loan or card would cost instead.

How it works and an example to tryShow less

How to use the result

Daily interest is derived from the EAR and applied for the days overdrawn each month, plus any usage fee. The alternative applies its annual rate to the same borrowing pattern.

Example to try

£800 overdrawn 18 days a month at 39.9% EAR costs about £13 a month, £160 a year. The same borrowing at 12.9% would cost about £60.

Put it to work

Try it on a real situation

Load an example

What moves the result most

    Worked out from your figures above. Tap a row to try it.

    Who uses it, and when

    Anyone regularly dipping into an overdraft, and people deciding whether to consolidate.

    Mistakes worth avoiding

    • Treating the overdraft as free because there is no fee.
    • Being overdrawn all month, which is a loan at a card rate.
    • Going past the arranged limit, where fees and returned payments add up fast.

    Questions

    What does the Overdraft Cost Calculator do?

    See what an arranged overdraft really costs at today's rates and what a cheaper route would save.

    How should I use the result?

    Daily interest is derived from the EAR and applied for the days overdrawn each month, plus any usage fee. The alternative applies its annual rate to the same borrowing pattern.

    Does TechBullion store the information I enter?

    The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.

    What mistakes do people make with an overdraft cost calculator?

    Treating the overdraft as free because there is no fee. Being overdrawn all month, which is a loan at a card rate. Going past the arranged limit, where fees and returned payments add up fast.

    Is the result guaranteed?

    No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.

    Part of the guide · Cards and short-term credit · 15 tools

    Loans and debt

    Monthly payments, true APR and total cost for personal, car and student loans; the fastest way out of credit-card debt; and whether consolidating, transferring or overpaying actually saves money.

    Also under “Cards and short-term credit”

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    Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.