Overdraft Cost Calculator
Almost every UK bank now charges around 39.9% EAR on an arranged overdraft — see what that actually costs you per month and per year, and how it compares with cheaper ways to borrow.
Estimate only. This is an estimate — representative figures, not financial advice. Your bank's actual EAR, any 0% buffer and exact charging method may differ — check your account terms. Struggling with your overdraft? Free, independent help is available from MoneyHelper, StepChange or National Debtline.
Enter your overdraft amount
Your monthly and annual overdraft cost, plus cheaper alternatives, appear here as you type.
How overdraft cost is calculated
An Effective Annual Rate (EAR) already accounts for compounding, so the daily cost isn't simply the EAR divided by 365 — it's decompounded into a true daily rate: (1 + EAR)^(1/365) − 1. That daily rate is then compounded over the number of days you're overdrawn each month to get the actual cost. Since the FCA's 2020 overdraft reforms banned the old daily and monthly fixed fees, this single annual rate — commonly around 39.9% — now applies to arranged and unarranged overdrafts alike at most major UK banks, which is why even a modest, short overdraft can cost far more than most people expect.