Balance Transfer Calculator

Use this Balance Transfer Calculator to compare keeping a credit card balance on your current card with transferring it to another card offering a promotional balance-transfer APR.

Important: A balance transfer is not automatically cheaper. The transfer fee, promotional APR, promotional period, post-promo APR, and your monthly payment all affect the final cost.

Balance Transfer Calculation Method

For the current card, the calculator estimates interest using a simplified monthly rate:

Monthly interest rate = APR ÷ 12 ÷ 100

Monthly interest = current balance × monthly interest rate

Ending balance = starting balance + interest − payment

The calculation repeats each month until the balance is paid off.

Balance Transfer Fee

The transfer fee is calculated from the amount transferred:

Percentage fee = transferred balance × transfer fee percentage ÷ 100

If the card also has a minimum fee:

Transfer fee = greater of percentage fee or minimum fee

If the fee is added to the transferred balance:

Starting transfer balance = transferred balance + transfer fee

Promotional and Post-Promo APR

During the promotional period, the calculator uses the promotional APR.

After the promotional period ends, any remaining balance is calculated using the post-promo APR.

Estimated transfer cost = transfer interest + transfer fee

Estimated savings = current-card interest − transfer cost

A positive result suggests the transfer may reduce borrowing cost under the assumptions entered. A negative result means staying with the current card may cost less.

Worked Example

Suppose you have:

• Balance: $6,000
• Current APR: 24.99%
• Monthly payment: $250
• Promotional APR: 0%
• Promotional period: 12 months
• Post-promo APR: 19.99%
• Transfer fee: 3%

The transfer fee is:

$6,000 × 3% = $180

If the fee is added to the balance:

Starting transfer balance = $6,180

Using the calculator’s simplified monthly payoff method, keeping the balance on the current card takes about 34 months and generates approximately $2,403 in interest.

With the balance transfer, the estimated payoff time is about 27 months. Transfer-card interest is approximately $424, plus the $180 transfer fee.

Estimated transfer cost = $424 + $180 = $604

Estimated savings = $2,403 − $604 ≈ $1,799

In this example, the transfer could save about $1,799, assuming the same monthly payment, no additional purchases or fees, and no missed payments.

Important Notes

• Credit card issuers often calculate interest using daily balances rather than the simplified monthly method used here.
• A 0% promotional APR does not mean the transfer is free because a balance-transfer fee may still apply.
• Any balance remaining after the promotional period may begin accruing interest at the post-promo APR.
• Promotional rates generally last only for a specified period. Check the card’s disclosure for the exact duration and rate that applies afterward.
• Making new purchases on the transfer card can result in additional interest and may affect any purchase grace period.
• Late payments can affect promotional terms and may lead to additional fees or higher rates depending on the card agreement.
• Transfer limits may prevent you from moving the entire existing balance.
• Continue making required payments on the old card until the transfer has been completed and confirmed.
• Actual savings depend on payment timing, daily interest calculations, fees, APR changes, and issuer-specific rules.

Sources

• Consumer Financial Protection Bureau — Credit Card Key Terms and Balance Transfers
• Consumer Financial Protection Bureau — Introductory Balance Transfer Rates
• Consumer Financial Protection Bureau — New Purchases After a Balance Transfer
• Consumer Financial Protection Bureau — How Credit Card Interest Is Calculated