Work out overdraft interest instantly with clear inputs, formula shown and shareable results.
An overdraft charges interest only on the amount actually drawn and only for the days it is outstanding, computed on a daily basis. That makes it cheap for short, uneven needs and expensive if a balance is left standing.
Overdraft interest
Interest = drawn × annual rate × days / 365
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Because interest stops the day you repay, so there is no cost for months you do not use the money.
Renewal and processing fees, and sometimes a commitment fee on the unused portion of the limit.