Overdraft Cost Calculator

This calculator works out what a single overdraft costs in New Zealand, combining the daily interest on the overdrawn balance with any establishment or facility fee. An overdraft lets your account go below zero up to an agreed limit, which is handy for smoothing out a tight patch, but it is a form of borrowing and it is priced accordingly. Interest is charged on the amount you are overdrawn for each day you stay in the red, at the annual rate divided by 365, so both the size of the overdraft and how long it lasts drive the cost. On top of interest, many overdrafts carry an establishment or monthly facility fee, and unarranged overdrafts, where the account dips below zero without an agreed limit, can cost more in fees again. You enter the amount you are overdrawn, the annual interest rate, the number of days you expect to be overdrawn, and any fee, and the calculator returns the interest, the fees and the total cost. It is a quick way to decide whether an overdraft is the cheapest way to bridge a gap, or whether clearing it faster, keeping a buffer, or a lower-rate option would save money. For a recurring pattern of being overdrawn, the overdraft habit calculator totals the yearly cost.

Interest is the amount overdrawn times the annual rate, for the days overdrawn out of 365. Unarranged overdrafts can cost more. Estimate only.