OD Interest Calculator

An overdraft is offered by banks and non-banking financial companies (NBFCs) when the consumer account balance is either reduced to zero or has a negative. Most financial institutions broaden their credit limit to give access to customers for borrowing money. However, some banks charge an overdraft fee for every settlement, and this fee differs from one bank to another. You can use the OD interest calculator to know the interest amount on overdraft limit. It is an easy-to-use tool available for free online.

  • What is an OD Calculator
  • How to Use
  • Benefits
  • Real-Life Example

What is an Overdraft Calculator?

An overdraft interest calculator is an online tool that helps you calculate the potential cost of using an overdraft. It takes certain factors into account for calculation, including overdraft amount, interest rate and duration. By mentioning these details, the overdraft calculator provides an estimate of the total interest and charges you might incur. An OD calculator helps you compare different available overdraft options and overdraft charges and estimate potential savings so that you can plan accordingly.

How to Use an Overdraft Interest Calculator?

  • Open the overdraft interest rate calculator on your browser.
  • Enter or select the Overdraft Amount.
  • Select the Annual Overdraft Interest per annum.
  • Select the Overdraft Period.

On entering the above details, the overdraft calculator will show you your Monthly EMI along with the Total Interest and Total Payable Amount.

The Benefits of Using an OD Calculator

Below are some of the benefits of using the OD EMI calculator:

  • Makes it easy to calculate your overdraft interest and other charges.
  • Fast calculation in a few simple steps.
  • Zero chances of human error.
  • Helps you plan your expenses and budget.
  • No paperwork required.
  • An online tool is available for free.

Real-Life Example of Using an Overdraft Calculator

Here’s an example of overdraft interest calculation using the overdraft EMI calculator:

Let’s say you have an overdraft limit of Rs. 30 Lakhs at an annual interest rate of 15% p.a.

Given:

  • Overdraft limit: Rs. 30 Lakhs
  • Annual interest rate: 15% p.a.
  • Daily interest rate: 15% / 365 = 0.0410%

If you use Rs. 10,000 from your overdraft limit for 15 days:

  • Daily interest: Rs. 10,000 x 0.0410% = Rs. 4.10
  • Total interest for 15 days: Rs. 4.10 x 15 = Rs. 61.50

FAQs

You can find overdraft calculators online on various bank portals and financial websites, including HDFC Bank, ICICI Bank, etc.

Yes, overdraft calculators are usually free to use, especially if they are offered by banks and other financial institutions as these tools help customers understand the cost and implications of overdrafts.

The main purpose of using an overdraft calculator is to help customers estimate the cost of borrowing money via an overdraft facility, including interest amount and other potential fees (if any), allowing them to make informed decisions about their finances.

Overdraft interest is calculated on the amount withdrawn by you beyond your account balance, with the average daily balance method, under which interest accrues daily and typically billed monthly.

Updated On Apr 21, 2025
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Written By Reshma RawatAssistant Content Manager of MyMoneyMantraCredit Cards, Credit Score, Personal Loan, Home Loan, etc.

Reshma Rawat is a passionate writer, with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra, and writes blogs & webpages on financial products (loans, credit cards, insurance, financial policies by government, mutual funds, etc.

Assistant Content Manager of MyMoneyMantra
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Written By Abhijeet SinghSenior Editor of MyMoneyMantraCredit Cards, Credit Score, Personal Loan, Home Loan, etc.

Abhijeet Singh has comprehensive experience in business writing, content management, SEO, social media and user analytics. Key areas of expertise include stock markets and personal finance.

Senior Editor of MyMoneyMantra