Credit Card Balance Transfer Savings Calculator

This calculator helps you determine the potential savings from transferring a high-interest credit card balance to a new card with a promotional low or 0% APR. Input your current balance, interest rates, transfer fee, and the promotional period to see how much interest and time you could save. Understanding these figures is key to making a smart financial decision and paying off your debt faster.

Current Card Balance ($):

Current APR (%):

Transfer Card APR (%):

Transfer Fee (% of balance):

Promo Period (Months):

Min. Payment Rate (%):

Calculation Results

Metric	Current Card Scenario	Balance Transfer Scenario

Visual Analysis

Interest Paid Comparison

Current Card Interest

$0.00

Balance Transfer Interest (Incl. Fee)

$0.00

Transfer Card Payment Breakdown

Interest Principal

Understanding Your Credit Card Balance Transfer Savings

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How to Use the Calculator for Maximum Benefit

The first step is gathering accurate data. You need your current card's balance and APR, and the details of the new balance transfer offer, including the promotional APR (often 0%) and the transfer fee percentage. Inputting precise figures is crucial for an accurate savings estimate. The calculator then applies the necessary financial formulas...

The Balance Transfer Calculation Formula Explained

The core logic uses the standard amortization formula for monthly payments: $M = P \frac{i(1+i)^n}{(1+i)^n - 1}$, where $M$ is the monthly payment, $P$ is the principal, $i$ is the monthly interest rate ($\text{APR}/12$), and $n$ is the number of months. For the balance transfer scenario, the calculation must account for the initial balance transfer fee and the switch from the promotional APR to the standard APR after the specified period. The calculation engine must prioritize these steps correctly to determine total interest paid in both scenarios...

Frequently Asked Questions (FAQ)

What is a balance transfer?

It is the process of moving debt from one credit card to another, usually to take advantage of a lower interest rate, often a 0% promotional APR, to save money on interest.

How does the transfer fee affect my savings?

The transfer fee (e.g., 3% to 5% of the transferred amount) is added to the total balance. The calculator includes this fee in the 'Balance Transfer' scenario, showing the true cost. If your savings from the 0% APR are less than the fee, the transfer may not be worthwhile.

Is the minimum payment rate important for the calculation?

Yes, it provides a realistic payoff timeline. If you only pay the minimum, the total interest paid and the time to payoff will be significantly higher than if you were making larger, consistent payments. Our calculator uses this to estimate the timeline under a minimum-payment-only scenario.

What happens after the promotional period ends?

After the promotional period (e.g., 12 months) ends, the remaining balance on the transfer card reverts to the card's standard, often higher, APR. To maximize savings, you should aim to pay off the entire balance before this period expires.

Why did the calculator show no savings?

No savings usually means the balance transfer fee, combined with any interest paid after the promotional period, is greater than or equal to the interest you would have paid on your current card. It may also occur if the transfer card's standard APR is very high.