💳 Balance Transfer Calculator
Calculate balance transfer savings and costs
Promotional rate (often 0% for intro period)
Typically 3-5% of transferred amount
Leave empty for interest-only comparison
How to Use This Calculator
Enter Current Balance
Input the current balance on your credit card that you want to transfer.
Enter Interest Rates
Enter your current APR and the promotional/transfer APR (often 0% for introductory periods).
Enter Transfer Details
Enter the transfer fee percentage (typically 3-5%) and the promotional period length in months.
Review Savings
See if the balance transfer saves you money. The calculator shows total savings (or costs) and break-even point.
Formula
Transfer Fee = Balance × Fee Percentage
Interest = Balance × Monthly Rate × Months
Savings = Current Interest - (Transfer Fee + Promo Interest)
Example Calculation:
If balance is $5,000, current APR 18%, promo APR 0%, fee 3%, 12 months:
• Transfer fee = $5,000 × 3% = $150
• Current interest = $5,000 × (18%/12) × 12 = $900
• Promo interest = $5,150 × (0%/12) × 12 = $0
• Savings = $900 - ($150 + $0) = $750
About Balance Transfer Calculator
A balance transfer calculator helps you determine if transferring your credit card balance to a card with a lower (or 0%) promotional interest rate makes financial sense. Balance transfers can save you money on interest, but they typically come with a transfer fee (usually 3-5% of the transferred amount). This calculator compares the cost of keeping your current card versus transferring to a new card, helping you make an informed decision.
When to Use This Calculator
- Balance Transfer Decision: Evaluate if a balance transfer saves money
- Cost Comparison: Compare current card costs vs. transfer costs
- Promo Period Planning: Understand savings during promotional periods
- Financial Planning: Plan debt repayment strategy
Balance Transfer Considerations
- Transfer Fee: Typically 3-5% of transferred amount (often $5-$10 minimum)
- Promotional Period: Low/0% rate usually lasts 12-18 months
- After Promo: Rate typically jumps to standard APR (often high)
- Pay Off Before Promo Ends: Critical to avoid high post-promo rates
Why Use Our Calculator?
- ✅ Savings Calculation: See exact savings from balance transfer
- ✅ Cost Comparison: Compare current vs. transfer costs
- ✅ Break-Even Analysis: Understand when transfer becomes worthwhile
- ✅ Decision Support: Make informed balance transfer decisions
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
When does a balance transfer make sense?
A balance transfer makes sense when the savings from lower/0% interest exceed the transfer fee, and you can pay off the balance before the promotional period ends. It's best for those who can make consistent payments to eliminate debt during the promo period.
What happens after the promotional period?
After the promotional period ends, the interest rate typically jumps to the card's standard APR, which is often high (18-25%+). It's crucial to pay off the balance before this happens, or the savings from the transfer will be lost.
How much is a typical balance transfer fee?
Balance transfer fees are typically 3-5% of the transferred amount, with a minimum fee (often $5-$10). For example, transferring $5,000 with a 3% fee costs $150. Some cards offer promotional periods with no transfer fee.
Should I transfer my balance if I can't pay it off during the promo period?
If you can't pay off the balance during the promotional period, a balance transfer may still help if you can significantly reduce it. However, you'll face the higher post-promo rate on the remaining balance. Calculate carefully and have a plan to pay off as much as possible during the promo period.