Advertisement
100% x 90

Balance Transfer Calculator

Calculate potential savings and costs of transferring credit card balances to a new card

Balance Transfer Analysis

$

Current balance you want to transfer

%

One-time fee ($0.00)

%

Annual percentage rate of current card

$

Amount you plan to pay monthly

%

Introductory rate on new card

months

Duration of promotional rate

Example Calculation

Balance Transfer Scenario

Current Card: $5,000 balance at 22% APR

Monthly Payment: $200

New Card Offer: 0% APR for 15 months, then 16.99% APR

Transfer Fee: 3% ($150)

Analysis Results

Current Card Total Cost: $6,243 (paid off in 36 months)

New Card Total Cost: $5,150 (includes transfer fee)

Total Savings: $1,093

Recommendation: Transfer is worth it!

Advertisement
100% x 250

Balance Transfer Tips

Compare Total Costs

Include transfer fees in your calculation

Pay Off During Promo

Maximize savings with promotional rates

!

Avoid New Purchases

Promo rate may not apply to new charges

Check Credit Impact

New applications may temporarily lower credit score

When to Transfer

Lower APR than current card

Can pay off during promotional period

Transfer fee is reasonable (typically 3-5%)

Good credit score for approval

Total cost exceeds current card

Unable to stop accumulating new debt

Understanding Balance Transfers

What is a Balance Transfer?

A balance transfer involves moving debt from one credit card to another, typically to take advantage of a lower interest rate or promotional offer. The new card pays off your old card's balance, and you now owe the money to the new card issuer.

How Balance Transfer Fees Work

Most balance transfers come with a fee, typically 3-5% of the transferred amount. This fee is added to your new card's balance, so it's important to factor this cost into your savings calculation.

Promotional vs. Regular Rates

  • Promotional Rate: Temporary low or 0% APR for new transfers
  • Regular Rate: Standard APR after promotional period ends
  • Duration: Promotional periods typically last 12-21 months

Calculation Methods

Promotional Period Mode

Calculates costs assuming you pay off the balance within the promotional period.

  • • Uses promotional rate for entire payoff period
  • • Shows minimum payment needed for promo payoff
  • • Best for maximizing promotional rate benefits

Long-term Mode

Calculates costs over a longer period, including time after promotional rate expires.

  • • Uses promotional rate, then regular rate
  • • More realistic for larger balances
  • • Accounts for rate changes over time

Important: Always compare the total cost including fees, not just interest rates.

Advertisement
100% x 250