Overdraft Loan

lynseydee

I am needing some money temporarily and am going to borrow it from my overdraft. I'm trying to work out what the interest would be on a monthly basis and want to know if I have calculated it correctly.

I'm looking to borrow £1,200.00 and the interest rate is 19.9%. I make the interest to be £19.90. Obviously the more I pay back every month the less interest I would pay.

Have I worked this out correctly?

Mark7799

Interest on a daily rate = 1200 x 19.9(%) /365

i.e 65.4p per day

edit : if you're not currently using your overdraft, don't forget to include any charges you may incur for doing so (depends what type of account you have)

lynseydee

Thanks theartfullodger

I was just wanting to work out rough figures so I know how much out of what I was paying back was going to be covering the interest.

Hopefully it will only be for a few months, as it is only a short term measure and we do have enough to pay back an amount that will cover not only the interest but also some of the balance. This will be our priority to pay off obviously because of the interest rate.