Calculate the cost of a UK business overdraft facility — interest on the balance used, the arrangement fee, and any penalty cost from unauthorised borrowing.
Données vérifiées · July 2026
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A UK business overdraft typically costs interest on the balance actually used, an arrangement fee charged on the facility limit, and — if you exceed the agreed limit — a much higher penalty rate on the unauthorised portion. This calculator totals all three components over the number of days used and annualises the combined cost so you can compare the overdraft against other short-term financing.
£5,000 overdraft balance at 12% annual interest for a full year, with a 1.5% arrangement fee: roughly £600 interest plus a £75 arrangement fee (on the same £5,000 limit).
Enter the overdraft balance used and the annual interest rate charged on it.
Enter the arrangement fee percentage and the facility limit (if different from the balance used).
Enter the number of days the overdraft is used for.
If you exceed the limit, enter the unauthorised amount and its penalty rate.
Last data update
July 7, 2026
Sources and references
UK Finance — Business banking facilities overview; FCA — business current account and overdraft disclosure rules.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
Enter the facility limit separately — the arrangement fee is calculated on the limit, not the balance used, so leaving it at zero (defaulting to the balance) will understate the fee if your agreed limit is larger.
Banks price unauthorised (over-limit) borrowing as a penalty to discourage it and to compensate for the higher risk of unplanned lending — treat any unauthorised cost shown here as a signal to renegotiate your facility limit rather than a sustainable financing option.