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Overdraft or term loan?

Need cash for a few months? Compare what an overdraft and a term loan would cost to cover the same gap.

Worked out only in your browser; nothing is sent or saved. We do not publish rates or fees: use the ones from your own quote.

For example 50,000

Overdraft

From your quote

Term loan

From your quote

Paid upfront, from your quote

What these numbers mean
  • The big result names which option costs less in total on your numbers.
  • Overdraft cost is interest on the full amount for the months you need it, plus fees.
  • Term loan cost is the interest over its full term, plus fees. You repay it in regular monthly amounts.
  • See overdraft and term.

Good to know

  • A simplification: the overdraft is fully drawn for the months you need it, then repaid in one go. Interest is simple interest each month on that balance.
  • The term loan is drawn for its full term with equal monthly repayments, even if your cash gap ends sooner. Early repayment fees, if any, are not included.
  • Overdraft limits are often reviewed each year. Fees other than the ones you type are not included.
  • This is a guide only, not a quote, an offer of finance, a borrowing limit or financial, legal or tax advice.

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