Minimum Balance Fee Drain
Minimum Balance Fee Calculator — Monthly Drain
What this calculator does
This calculator shows the total cost of a recurring minimum balance fee and expresses it as a percentage of your average balance.
The math, with a worked example
Total fees = monthly fee × months. Effective annual drain = monthly fee × 12 ÷ current balance × 100. A $12 monthly fee on a $120 balance costs $144 per year, which is a 120% effective annual drain.
Why this matters
A $12 monthly fee on a $120 balance is a 120% annual drain — payday-loan pricing applied to your own deposited money. Minimum-balance fees hit hardest exactly when balances are lowest, which is the opposite of how a bank should price risk.
Methodology and transparency
Effective annual drain = monthly fee × 12 ÷ balance × 100. The percentage framing is the point: the same $12 is trivial on $5,000 and predatory on $120. The fix is usually free — low-balance and second-chance accounts without monthly fees exist at most large banks and credit unions now; ask for the fee schedule by name. Everything runs in your browser; no data is sent or stored.
Last reviewed: 2026-08-08
Common questions
Can I avoid the fee?
Often yes. Check if your bank waives it with direct deposit, a minimum balance, or a certain number of transactions.
Is it worth keeping the account?
If the fee is more than the interest you earn, consider switching to a no-fee account.
How is the annual drain calculated?
It is the yearly fees divided by your current balance, showing the fee as a percentage of your money.