How Overdraft Early Repayment Fees Are Calculated
A revolving overdraft line of credit lets you draw and repay freely, so it typically carries no early repayment fee. However, some promotional or fixed-rate lines charge a declining fee if you repay within an initial period — often the first 3 years — after opening.
Fee Formula
Fee = Repayment Amount × Fee Rate × (Remaining Exempt Months ÷ Exemption Period)
For example, with a 36-month exemption period, repaying $8,000 at month 12 with a base fee rate of 0.7% applies the remaining 24/36 ratio, working out to roughly 0.47% — about $37 in fees. Once you pass the exemption period, no fee applies at all.
Confirming Your Exact Fee
Actual fee rates and exemption periods vary by product and lender, so check your loan agreement or your bank's app for the precise terms. This calculator applies a standard declining-fee structure as an estimate.
Frequently Asked Questions
Standard revolving overdraft lines usually have no early repayment fee since you can draw and repay freely, but some promotional or fixed-rate lines charge a fee if repaid within an initial period (often 3 years).
Yes. Most fee structures decline the closer you get to the exemption period, and disappear entirely once you pass it.
Check your original loan agreement or your bank's app under the loan details section for the exact fee rate and exemption period.