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Overdraft cost calculator

Enter the overdraft amount used, the overdraft rate, and the number of days used. The calculator works out what it cost.

Result

Overdraft cost

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Overdraft cost = amount used × rate ÷ 100 × days used ÷ 365. Unlike an ordinary loan, overdraft interest is usually charged only on the amount actually drawn and only for the days the account was negative — not on the whole limit.

Overdraft rates are typically noticeably higher than ordinary loan rates — that's the price of flexibility: the money is available instantly without a separate application, which is exactly why an overdraft usually isn't a good source of financing over a long period.

If the money is needed for more than a few weeks, it's usually worth comparing the overdraft cost to an ordinary short-term loan for the same amount and period — use the separate loan overpayment calculator to compare.

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