Tools/Overdraft (OD) Interest Calculator
Overdraft Interest Calculator
Overdraft interest is charged only on what you use, only for the days you use it. See your exact cost.
Utilisation Details
Total interest for 90 days
₹1,47,945
Effective monthly cost
₹49,315
Calculated at 12% p.a. on ₹50 Lakh
125+ lenders. Termsheet in 48h. Zero equity dilution.
How overdraft interest works
The formula: Interest = Amount Utilised × Rate × Days ÷ 365. Unlike a term loan, you're not charged on the full sanctioned limit - only on the drawn amount, calculated daily and typically debited monthly.
This makes an OD ideal for lumpy, unpredictable cash needs - you keep a limit ready and pay only when you draw. Recur Club offers dropline overdrafts where the limit steps down over time, often at better rates than traditional bank ODs.
Explore Dropline OverdraftWhat is an overdraft interest calculator?
An overdraft interest calculator shows what your OD facility actually costs. Unlike a term loan where interest runs on the full amount, an overdraft charges interest only on the money you draw, only for the days you use it - this calculator applies that daily-interest logic for you.
It is the fastest way to compare an OD against a term loan for your specific usage pattern, and to check whether your current bank's OD pricing is competitive.
How to use this OD interest calculator
- 1
Enter your sanctioned overdraft limit.
- 2
Set the amount you actually plan to draw - this is what interest is charged on.
- 3
Set your interest rate. Bank ODs typically run 9-15% p.a.; dropline ODs are often cheaper.
- 4
Choose how many days the amount stays drawn.
- 5
Read the interest cost instantly - and see how it compares to keeping the same money on a term loan.
Advantages of using an overdraft calculator
Pay-per-use clarity
See exactly what a 30, 60, or 90 day drawdown costs before you use the limit.
OD vs term loan decision
Quickly test whether your usage pattern favours utilisation-based pricing or a fixed EMI.
Benchmark your bank
If your bank's OD costs more than the market, the calculator quantifies what switching saves.
Budget seasonal needs
Model festival-season or order-cycle drawdowns and plan the interest cost into your margins.
Factors that affect overdraft interest rates
Security offered
ODs against FDs or property price lowest; unsecured ODs cost more but need no collateral.
Banking relationship
Strong average balances and clean account conduct earn better OD pricing at renewal.
Limit utilisation pattern
Consistently maxed-out limits signal stress; disciplined utilisation supports better renewals.
Facility type
Dropline ODs, where the limit steps down over time, often price better than evergreen bank ODs.