Overdraft Cost Calculator
Estimate the interest and fees charged on a bank account overdraft based on how much you are overdrawn, the rate charged and any daily fee.
Your results
Calculation breakdown
- Interest
- amount overdrawn × annual rate × (days ÷ 365)
- Fees
- daily fee × days overdrawn
Worked example
Being $1,000 overdrawn for 20 days at 14% p.a. costs about $7.70 in interest, plus any daily fee your bank charges on top.
Assumptions
- Assumes a constant overdrawn balance for the period; a fluctuating balance would give a different result.
- Some accounts charge interest and fees differently; check your account's terms.
- Does not include any dishonour fees from failed transactions.
How this calculator works
An overdraft lets you spend beyond your account balance up to an approved limit, with interest charged daily on the overdrawn amount plus sometimes a daily or monthly fee. This calculator estimates the interest cost over your chosen period and adds any flat fees for a total cost of using the overdraft.
Frequently asked questions
How is overdraft interest usually charged?
Interest is typically calculated daily on the overdrawn balance and charged to your account periodically, so the longer and larger the overdrawn amount, the higher the cost.
Is an overdraft cheaper than a payday loan?
It depends on the rates and fees involved, but an approved overdraft from your everyday bank account is often cheaper than short-term small amount credit; compare both using their respective calculators.
Can I avoid overdraft fees?
Keeping a buffer in your account, setting balance alerts, or arranging a lower-cost line of credit can help you avoid falling into an expensive overdraft position.
Results are estimates only and are not financial, tax, legal or credit advice.