Cash Credit (CC) & Overdraft (OD) Interest Calculator
This cc od interest calculator works out how much interest you're paying on a Cash Credit or Overdraft facility from an Indian bank, based on the amount you've actually utilized — not your full sanctioned limit. Enter your numbers below and it recalculates instantly, including utilization percentage and total financing cost.
Cash Credit & Overdraft Interest Calculator
Select Cash Credit or Overdraft, enter your sanctioned limit, amount utilized, interest rate and the number of days — the calculator shows daily interest, interest for the period, and utilization immediately below.
₹10,00,000
₹6,00,000
Renewal fee, documentation charges, or any other charge you want included.
Estimated Interest for 30 Days
₹5,671
Amount Utilized
₹6,00,000
Sanctioned Limit
₹10,00,000
Utilization
60.0%
Annual Interest Rate
11.5%
Number of Days
30
Daily Interest
₹189.04
Credit Limit Utilization
Sanctioned Limit
₹10,00,000
Utilized Amount
₹6,00,000
Available Limit
₹4,00,000
Utilization %
60.0%
Credit utilization = Amount utilized ÷ Sanctioned limit × 100. Interest is calculated only on the amount utilized on any given day, not on the full sanctioned limit — this is why lowering daily utilization, where your facility terms allow it, directly lowers interest cost.
Total Financing Cost
Total Financing Cost
₹5,671
This total reflects only what you've entered above. Actual charges depend on your bank's specific Cash Credit facility agreement and schedule of charges.
Interest at Different Utilization Amounts
At 11.5% annual interest, 365-day basis:
| Amount Utilized | 30-Day Interest | Annual Interest |
|---|---|---|
| ₹1,00,000 | ₹945 | ₹11,500 |
| ₹5,00,000 | ₹4,726 | ₹57,500 |
| ₹10,00,000 | ₹9,452 | ₹1,15,000 |
| ₹25,00,000 | ₹23,630 | ₹2,87,500 |
Interest at Different Rates
On ₹6,00,000 utilized, 365-day basis:
| Annual Rate | 30-Day Interest | Annual Interest |
|---|---|---|
| 10.0% | ₹4,932 | ₹60,000 |
| 11.0% | ₹5,425 | ₹66,000 |
| 11.5% | ₹5,671 | ₹69,000 |
| 12.0% | ₹5,918 | ₹72,000 |
| 13.0% | ₹6,411 | ₹78,000 |
Disclaimer: This calculator is for informational purposes and does not replace the interest calculation in your bank's facility agreement or account statement. Actual interest, penal charges and fees are determined by your bank's terms — verify final figures against your statement before making a financial decision.
How to Use the CC & OD Interest Calculator
- Select whether the facility is a Cash Credit (CC) or Overdraft (OD) account.
- Enter your sanctioned credit limit and the amount currently utilized (drawn).
- Enter the annual interest rate charged by your bank on this facility.
- Enter the number of days you want to calculate interest for — for example, 30 for a month.
- Optionally add a penal interest rate and any other charges you want reflected in total cost.
How Is Cash Credit Interest Calculated?
Cash Credit accounts typically charge interest on the amount actually drawn each day, not on the full sanctioned limit. The basic calculation this tool uses is:
This calculator uses a 365-day year for the daily rate. Some banks may use a 360-day convention or apply monthly compounding on the drawn balance instead of simple daily interest — check your facility agreement or account statement for the exact method your bank uses, since it can produce a slightly different figure from this estimate.
Cash Credit Interest Calculation Example
Illustrative example — not a bank statement.
| Amount utilized | ₹6,00,000 |
| Annual interest rate | 11.5% |
| Period | 30 days |
| Interest for 30 days | ≈ ₹5,671 |
Step by step: daily interest = ₹6,00,000 × 11.5% ÷ 365 ≈ ₹189.04 per day. Over 30 days, that's ₹189.04 × 30 ≈ ₹5,671.
How Is Overdraft Interest Calculated?
Overdraft interest is generally calculated the same way as Cash Credit interest — on the daily outstanding (drawn) balance in the account, at the applicable annual rate. The main practical difference is usually what the facility is secured against (for example, a fixed deposit or property for OD, versus stock or receivables for CC), not the interest formula itself. Use the same calculator above and select "Overdraft (OD)" as the account type.
Cash Credit vs Overdraft: What's the Difference?
| Aspect | Cash Credit (CC) | Overdraft (OD) |
|---|---|---|
| Typically secured against | Stock, inventory, receivables | Fixed deposits, property, or other collateral |
| Common use case | Working capital for trading and manufacturing businesses | Short-term liquidity against a current account |
| Limit basis | Often linked to stock/receivables value (drawing power) | Often linked to collateral value or account relationship |
| Interest basis | Typically on amount utilized | Typically on amount utilized |
Exact eligibility, security requirements and renewal terms vary by bank and by borrower — confirm the specific structure of your facility with your bank rather than relying on general definitions.
How CC/OD Utilization Affects Interest
Because interest is usually charged on the daily drawn balance rather than the sanctioned limit, utilization directly drives cost. For example: ₹6 lakh utilized against a ₹10 lakh limit is 60% utilization — you're paying interest on ₹6 lakh, not ₹10 lakh. If that utilization dropped to ₹4 lakh (40%) at the same 11.5% rate, 30-day interest would fall from roughly ₹5,671 to roughly ₹3,781. The calculator above shows this relationship for your own numbers under "Credit Limit Utilization."
Cash Credit Interest Rate in India
Cash Credit and Overdraft interest rates in India are set individually by each bank and typically depend on factors such as the borrower's credit profile, the bank's benchmark lending rate, the type and value of security offered, and the specific facility terms negotiated. Because these rates change over time and differ by bank and borrower, this page does not publish a single "average" CC/OD rate — check your sanction letter or renewal terms for your actual rate, or your bank's current published rates for a new facility.
For current benchmark lending rate frameworks that Indian banks use to price such facilities, see the Reserve Bank of India's published guidelines.
Other CC & OD Costs to Check
Beyond the interest itself, CC/OD facilities commonly involve additional charges, including:
- Processing fees — charged when the facility is first sanctioned
- Renewal fees — charged when the facility limit is renewed, typically annually
- Penal interest — an additional rate charged for exceeding the sanctioned limit or breaching other terms
- Documentation charges — for stock statements, collateral documentation, or agreement processing
- Other facility-specific charges — inspection charges, non-submission-of-stock-statement penalties, and similar items
Exact fee amounts vary by bank and are published in each bank's official schedule of charges — this page does not state specific fee figures for any bank, since we have not verified current figures against an official source for this page. Check your bank's official schedule of charges for exact numbers.
How to Reduce CC/OD Interest Costs
- Route surplus cash through the account where your facility terms allow it, so idle balances offset the drawn amount and reduce daily interest.
- Avoid breaching your sanctioned limit to steer clear of penal interest, which is typically charged in addition to the standard rate.
- Match utilization to your actual working-capital cycle — draw only what a given receivables or inventory gap requires, rather than holding a high balance out of convenience.
- Compare rates at renewal, since CC/OD rates are typically revisited periodically and may be negotiable based on your credit profile and relationship with the bank.
- Review whether CC/OD is still the right tool — for receivables-driven cash gaps specifically, invoice discounting can sometimes be a lower-cost alternative; compare the two with our tools below.
Frequently Asked Questions
What is a CC OD interest calculator?
It is a tool that estimates the interest cost on a Cash Credit (CC) or Overdraft (OD) facility from an Indian bank, based on the amount you actually utilized, your annual interest rate, and the number of days involved — not the full sanctioned limit.
How is Cash Credit interest calculated?
Most Cash Credit accounts charge interest on the amount actually utilized each day, calculated as: Interest = Amount Utilized × Annual Interest Rate × Number of Days ÷ 365. The exact day-count convention and compounding frequency are set by your bank’s facility agreement, so treat this as an estimate rather than a bill.
Is CC interest calculated on the full sanctioned limit?
No, generally not. In most Cash Credit and Overdraft arrangements, interest is charged only on the amount you’ve drawn or utilized on a given day, not on the full sanctioned limit. This is why lowering your daily utilization — for example, by depositing surplus cash into the account — typically reduces the interest charged, subject to your specific facility terms.
What is the difference between Cash Credit and Overdraft?
Cash Credit is typically extended against stock, receivables or other current assets and is common for working-capital needs like inventory or supplier payments. Overdraft is typically extended against a current account, often secured by fixed deposits, property or other collateral, without necessarily being tied to stock or receivables. Both usually charge interest on the amount utilized rather than the full limit, but eligibility, security and renewal terms differ by bank and product.
How can I reduce interest on my CC or OD account?
Since interest is usually charged on the daily utilized balance, the most direct lever is reducing how much you draw and for how long — for instance, depositing incoming receivables promptly instead of letting cash sit idle elsewhere while the facility stays drawn. Comparing interest rates at renewal, avoiding penal interest by staying within your sanctioned limit, and reviewing whether your utilization pattern still matches your actual working-capital cycle are the other practical levers.
Related Tools
How We Calculate
- Formula: Interest = Amount Utilized × Annual Interest Rate × Number of Days ÷ 365
- Day-count assumption: a 365-day year, simple daily interest — not 360 days, and not monthly compounding
- Interest-rate assumption: the annual rate you enter is applied uniformly across the period; the calculator does not model a rate that changes mid-period
- Charges: processing fees, renewal fees, and other bank-specific charges are included only if you enter them manually — this calculator does not look up or assume any bank's actual fee schedule
- Nature of this calculation: this is a generic, illustrative estimate based on the inputs you provide. It is not based on any specific bank's documented billing methodology, since that methodology (compounding frequency, exact day-count convention, and billing cycle) varies by bank and is set out in your facility agreement
Last updated: · Reviewed by: not yet reviewed by a named financial professional — treat this page as an informational estimate, not verified advice.