Borrowing calculator
Overdraft cost calculator
FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying.
Last updated: .
Estimate the interest on an arranged overdraft from your bank’s EAR, how much you’re overdrawn and for how many days, so you can compare it with other ways to borrow.
Illustrative only, not financial or tax advice. Results depend entirely on the figures you enter. Figures filled in below are labelled “Example figure” — they aren’t recommendations.
Estimate your overdraft cost
Your illustrative results
- Cost per month
- –
- Total cost
- –
- Total interest
- –
- Interest per £100 per day
- –
Interest plus any fee.
Over all the months.
Excluding fees.
At this EAR.
How this calculator works
EAR is the annual rate including the effect of compounding; banks must show it for overdrafts. We assume the same balance and days each month.
Unarranged overdrafts, buffers and interest-free amounts aren’t modelled — check your bank’s terms. Results are rounded to the penny; days and months are whole numbers.
If you’re regularly overdrawn, compare the cost with other options in our credit and borrowing guides. Free help is available from StepChange, Citizens Advice and National Debtline.
The formulas we use
Interest each month: balance × ((1 + EAR)^(days ÷ 365) − 1)
Cost per month: interest + fee; total: cost per month × months
FAQ
What is EAR?
The effective annual rate — the yearly cost of an overdraft including compounding, excluding fees.
Why is my bank’s figure different?
Banks may charge daily or monthly and may offer interest-free buffers. This calculator assumes a steady balance.
Is an overdraft cheaper than a credit card?
It depends on the rates and how long you borrow. Compare the EAR with the card’s APR and any fees.
Where can I get free debt help?
StepChange, Citizens Advice and National Debtline offer free, confidential help.
Does this calculator store my figures?
No.
Get our weekly email
The Friday Finance Lowdown — five minutes of the money stuff worth knowing.
Free to join. See our privacy policy for how we handle your email address.