Overdrafts suit short, fluctuating gaps; a term loan is usually cheaper for a steady, longer need.

No — it's a free illustration. Your actual Creditcorp offer depends on an assessment of your company.

Overdraft cost calculator — Calculators

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Results are illustrative, not a quote or credit decision.

How to interpret the result

The figure the calculator produces is a running-cost estimate, not a bill you'll see in one go — overdraft interest is typically charged periodically based on how much of the facility you've actually drawn on, so the number reflects a year of that pattern rather than a single upfront charge. It's most useful as a comparison point: a way of putting a fluctuating, on-demand facility on the same footing as a fixed-term loan quote so you can judge which structure suits the shape of your cash need, not just its size.

Treat the arrangement or renewal fee line as a reminder that overdrafts carry costs beyond the headline rate. Some facilities also apply a separate charge for the unused portion of the limit, and terms vary by lender and by how the facility has been reviewed over time. If your own overdraft has a different fee structure to the one assumed here, adjust the fee field to match your actual facility rather than relying on the default.

Limitations and good practice

This tool assumes a single average balance held steady across the year, which is a simplification — most companies draw more heavily in some periods (seasonal stock, VAT and payroll dates) and less in others, so the true cost can sit above or below this estimate depending on how uneven your usage actually is. It also can't account for facility reviews, limit reductions, or a lender withdrawing the overdraft at short notice, all of which are features specific to how overdrafts are structured compared with a committed term loan.

Good practice is to run the figures using your actual bank statements over a full year rather than a rough guess, and to re-run the comparison whenever your borrowing need or your bank's terms change. If the result suggests a steadier, longer-term need is being financed through a facility designed for short-term fluctuation, that's usually the signal to compare it properly against a term loan alternative rather than simply renewing the overdraft by default.