This calculator requires the use of Javascript enabled and capable browsers. This script calculates the APR (annual percentage rate) for very short term bank loans, typically $1000 or less, known as Overdrafts or NSF coverage. These OD loans are not for a year (or the weak of heart); most often not even for a month or a week... just a few days. Hence, the APR when calculated is excessive and well beyond what would normally be termed as "loan sharking" or "interest gouging". But these are from banks! They are there to HELP you! This should be an eye opener for you; this is normally one of the most profitable departments in ANY bank. However, they are legitimate in all states; and in certain cases for many people, there is a place and need in life for these types of loans. They are certainly NOT for everyone and should NOT be used regularly. To use this calculator, make an entry in dollars and cents to the OD amount field, the OD fee (or fees and charges) in dollars and cents and a repayment time in days, usually no more than 10 days. Click on Calculate and see the (often terrifying, certainly expensive) APR for this loan. You may click on Clear Values and do another. You MAY enter a decimal for entries in all fields but do not enter any commas or dollar signs (, or $). You MUST have at least 1 day, some positive amount of a fee and a positive loan amount. In our example, your account had some bank charges applied to it that overdrew the account. In the process a check for $100 to the grocery store is now insuffient. You get a notice from the bank that they paid the check and have charged you $22 for that OD (a loan) and that you need to make a deposit to cover it (and the fee) within 5 days, making the total time of the loan 10 days. The OD fee is $22.00 for the 10 days; the amount of the loan is $100 + $22.00. The total amount due for repayment is $122.00. The APR calculated is a stunning 803%! Lets take an even worse case situation... You have 3 checks that total $100 that were paid as overdrafts. The loan is $100 but the fee is $22 each for a total of $66. The total repayment is $166. That equates to an incredible APR of 2409%. It happens every day in every bank. This is the formula:
