Balance Transfer Calculator
Compare multiple cards and calculate savings with detailed amortization schedules
Balance Transfer Analysis
One-time fee ($150.00)
Amount you plan to pay monthly
Introductory rate on new card
Duration of promotional rate
Detailed Comparison
Current Cards
New Card (After Transfer)
💡 Promotional Period Strategy
To pay off the balance within the 15-month promotional period, you need to pay at least $343.33 per month.
⚠️ Your current payment ($200) is too low. You'll carry a balance past the promo period.
📊 Key Insights
Example Calculation
Balance Transfer Scenario
Card 1: $3,000 balance at 22% APR
Card 2: $2,000 balance at 18.5% APR
Total Balance: $5,000
Monthly Payment: $200
New Card Offer: 0% APR for 15 months, then 16.99% APR
Transfer Fee: 3% ($150)
Analysis Results
Current Cards Total Cost: $6,243 (paid off in 36 months)
New Card Total Cost: $5,300 (includes transfer fee)
Total Savings: $943
Time Savings: 10 months faster
Recommendation: ✓ Transfer is worth it!
💡 Balance Transfer Tips
Compare Multiple Cards
Transfer all high-interest balances to save more
Pay Off During Promo
Maximize savings with promotional rates
Factor in Transfer Fees
Include all costs in your calculations
Avoid New Purchases
Promo rate may not apply to new charges
Check Credit Impact
New applications may temporarily lower score
When to Transfer
Lower APR than current card(s)
Can pay off during promotional period
Transfer fee is reasonable (typically 3-5%)
Good credit score for approval
Multiple high-interest cards to consolidate
Total cost exceeds current cards
Unable to stop accumulating new debt
Understanding Balance Transfers
What is a Balance Transfer?
A balance transfer involves moving debt from one or more credit cards 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 or a flat fee. This fee is added to your new card's balance, so it's important to factor this cost into your savings calculation.
Multiple Card Transfers
You can transfer balances from multiple credit cards to a single new card, consolidating your debt and potentially saving even more on interest. Our calculator supports analyzing multiple cards to give you the complete picture.
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
Break-Even Analysis
The break-even point shows when your savings exceed the transfer fee. If you're past this point, the balance transfer is working in your favor. Our calculator identifies this month for you.
Important: Always compare the total cost including fees, not just interest rates. Use the payment schedule to see exactly how your balance decreases over time.
❓ Frequently Asked Questions
How do I add multiple credit cards to compare?
Click the "+ Add Another Card" button in the calculator. You can add unlimited cards to see the total savings from consolidating all your balances. Each card can have its own balance and APR, and the calculator will automatically compute the weighted average APR.
What is a weighted average APR?
The weighted average APR is calculated by multiplying each card's balance by its APR, summing these values, and dividing by the total balance. This gives you an accurate overall interest rate across all your cards. For example, if you have $3,000 at 22% and $2,000 at 18%, your weighted average APR would be 20.4%.
What does the break-even point mean?
The break-even point is the month when your cumulative savings from the lower interest rate exceed the transfer fee you paid. After this point, every payment saves you money compared to keeping your balance on the old card(s). If the break-even shows "Immediate," it means the savings start from month 1.
Should I use "Promotional Period" or "Long-term Use" mode?
Use Promotional Period mode if you plan to pay off the entire balance during the promotional period (typically 12-21 months). Use Long-term Use mode if you need more time to pay off the debt and want to see costs beyond the promotional period, including the regular APR that kicks in afterward.
What if my monthly payment is too low?
The calculator will warn you if your payment is insufficient to pay off the balance during the promotional period. In this case, you'll carry a balance past the promo period and be charged the regular APR on the remaining amount. To maximize savings, increase your monthly payment to at least the recommended minimum shown in the "Promotional Period Strategy" section.
How do I see the month-by-month payment breakdown?
After entering your information and viewing results, click the "Show Payment Schedule"button. This displays a detailed amortization table showing payment, principal, interest, and remaining balance for each month, comparing your current cards side-by-side with the new card.
Should I use percentage or flat fee for the transfer fee?
Most balance transfer cards charge a percentage fee (typically 3-5% of the transfer amount). However, some cards charge a flat fee (like $5 or $25) regardless of the amount transferred. Check your card's terms and select the appropriate option. The calculator shows the actual dollar amount in both cases.
Will a balance transfer hurt my credit score?
A balance transfer can have both positive and negative effects on your credit score. The positive: paying down debt improves your credit utilization ratio. The negative: applying for a new card triggers a hard inquiry, which may temporarily lower your score by a few points. However, if you keep old cards open and pay off debt faster, the long-term effect is usually positive.
Can I transfer a balance from multiple cards to one new card?
Yes! This is called debt consolidation and is one of the main benefits of balance transfers. You can transfer balances from multiple cards to a single new card with a promotional rate, simplifying your payments and potentially saving significant money on interest. Our calculator is specifically designed to handle multiple card comparisons.
What happens if I don't pay off the balance during the promotional period?
If you have a remaining balance when the promotional period ends, the regular APR will apply to that balance going forward. This is why it's crucial to either pay off the entire balance during the promo period or at least have a plan for the remaining balance. Use the "Long-term Use" mode to see the actual costs if you can't pay off everything during the promotional period.
Should I close my old credit card after transferring the balance?
No! Keep your old cards open after transferring the balance. Closing them can hurt your credit score by reducing your available credit (increasing your utilization ratio) and lowering the average age of your accounts. Instead, make a small purchase occasionally on the old cards and pay it off immediately to keep them active.
Can I make new purchases on my balance transfer card?
While you technically can, it's not recommended. The 0% promotional rate usually only applies to transferred balances, not new purchases. New purchases typically accrue interest at the regular APR immediately. Focus on paying off your transferred balance first, and avoid adding new debt that could undermine your savings.
How accurate are the calculator's predictions?
The calculator uses standard financial formulas for compound interest and amortization, providing mathematically accurate results based on your inputs. However, actual results may vary if you: change your payment amounts, make additional purchases, miss payments, or if your APR changes. Always review your card's terms and conditions for specific details.
What if the calculator shows that a balance transfer isn't worth it?
If the calculator indicates that a transfer isn't beneficial (red warning), it means the total cost with fees would exceed what you'd pay by keeping your current cards. This can happen if: the transfer fee is too high, the promotional period is too short, the regular APR is similar to or higher than your current rate, or your current APR is already relatively low. In this case, focus on paying down your existing debt aggressively instead.