Overdraft Interest Calculator India — OD Account Daily Interest

Last updated: 29 April 2026 Reviewed by Arjun Mehta, CA

An **overdraft (OD) account** charges interest only on the amount you actually use, unlike a term loan where you pay on the full disbursed amount. OD interest is calculated daily on the outstanding balance. This makes OD accounts cost-efficient for businesses and individuals who need flexible access to funds rather than a fixed lump sum.

Overdraft Limit (₹)

Amount Utilised (₹)

Interest Rate (% p.a.)

Number of Days Used

Interest for Period —

Daily Interest Cost —

Unused OD Available —

Annual Cost if Fully Utilised —

View Year-by-Year Breakdown

Real-World Examples — 2026

OD against FD — 30 days utilisation

₹5 lakh OD against FD at 9.5% p.a. used for 30 days: interest = 5,00,000 × 9.5% × 30/365 = ₹3,904. FD earning 7% on ₹5 lakh = ₹5,753/month. Net cost = ₹3,904 interest minus ₹5,753 FD income = net gain of ₹1,849. OD against FD is the cheapest credit option.

Salary OD for bridging month-end gap

Bank salary OD of ₹50,000 at 12% p.a. used for 15 days: interest = 50,000 × 12% × 15/365 = ₹247. Far cheaper than credit card interest (₹50,000 at 36% for 15 days = ₹740).

Frequently Asked Questions

What is a bank overdraft facility?

An overdraft (OD) allows you to withdraw more than your account balance up to an approved limit. Interest is charged only on the amount actually used, not the entire limit — similar to a credit card but with lower rates. Common types: OD against FD (1–2% above FD rate), OD against property, and salary OD.

What is overdraft against FD interest rate?

OD against FD typically costs 1–2% above the FD interest rate. If your FD earns 7%, OD costs 8–9% p.a. This is cheaper than personal loans (10–18%) and credit cards (24–36%). The FD continues to earn interest while you use the OD facility.

How is overdraft different from a term loan?

Term loan: fixed disbursement, EMI-based repayment, interest on full amount. Overdraft: flexible drawdown, pay only for days used, interest only on outstanding amount. OD is ideal for working capital — businesses and self-employed prefer OD for cash flow management.

Is the Overdraft Calculator free?

Yes, completely free with no registration on CalcPhi.

Are my inputs stored?

No. All calculations run in your browser. We never store your financial data.

Can I use the Overdraft Calculator on mobile?

Yes. CalcPhi works on all modern smartphones and tablets.