Overdraft Fee Calculator
Work out what an overdraft really costs: per-item fees with daily caps and $-cushion waivers, extended or sustained overdraft fees, or interest at an EAR/APR with an interest-free buffer — plus the cost as an APR, a day-by-day table, the yearly cost and cheaper alternatives.
How it works
Fees: total = items charged × fee per item + extended-fee days × daily fee · items charged allow for a daily cap and a small-overdraft cushion · interest (EAR) = (balance − buffer) × ((1 + EAR)^(days ÷ 365) − 1); nominal APR = (balance − buffer) × APR × days ÷ 365 · cost as an APR = total cost ÷ amount overdrawn × 365 ÷ days
Banks charge for overdrafts in two main ways. Most US banks and credit unions charge a flat fee for each payment that goes through while you are below zero (often $25 to $35). Many cap the number of fees per day, waive them when you are only a few dollars overdrawn, and some add an extended or sustained fee if the balance stays negative for several days. UK banks and many others charge interest on the overdrawn balance instead: since 2020 UK banks have had to use a single yearly rate, quoted as an EAR, with no daily or monthly fees. This calculator handles either model, or both together. It shows the fees and interest, a day-by-day running total and the yearly cost if it keeps happening. It also turns the cost into an APR, which shows how expensive a fee-based overdraft is as a short loan. The comparison table sets it against a transfer from linked savings or simply having the payment declined.
Worked example
Three card payments overdraw an account by $100 and it stays negative for 5 days. At $35 per item with no daily fee, that is 3 × $35 = $105, which works out to $105 ÷ $100 × 365 ÷ 5 = 7,665% as an APR. With a cap of 2 fees per day and all three items on the same day, only $70 is charged. If the bank waives fees when you are $100 or less overdrawn, nothing is charged at all. A UK account overdrawn by £500 for 30 days at 39.9% EAR costs £500 × (1.399^(30/365) − 1) = £13.99 in interest.
Sources: CFPB — Know your overdraft options · FCA — Overdraft pricing rules (PS19/16)
Frequently asked questions
Can overdraft fees be refunded?
Often yes. Many banks waive a first or occasional overdraft fee if you call and ask, especially with a good history.
How do I avoid them?
Turn off overdraft coverage so transactions are declined instead, keep a small buffer, or link a savings account for free transfer cover.
Why is the APR of an overdraft fee so high?
A flat fee on a small, short overdraft is a very expensive loan. Paying $35 to borrow $24 for 3 days works out to more than 17,000% a year. The APR figure shows this so you can compare the fee with a credit card, a cash advance or a small loan.
What is an extended or sustained overdraft fee?
A charge some banks add when the balance stays negative for several business days, either once (for example $35 after 5 days) or every day until you repay. Enter the grace period and how the fee is charged under More options. Many large banks have dropped these fees.
How is overdraft interest worked out in the UK?
Interest accrues daily on the overdrawn balance at the rate shown as an EAR, often around 35% to 40%, and is usually taken monthly. Any interest-free buffer is taken off first. £500 overdrawn for 30 days at 39.9% EAR costs about £14.
Related calculators
This is an educational estimate, not financial advice. Confirm exact figures with your lender, employer or a licensed advisor.