Balance Transfer Calculator

Work out whether a 0% balance transfer saves money after the transfer fee, and what payment you need to clear the balance before the promotional rate ends.

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Your numbers

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You save by transferring
$2,450
After the $270 transfer fee
Breakdown
Cost — transfer$313
Cost — stay$2,762
Payment needed to clear before 0% ends18 months
$515
Transfer fee
$270
Interest if you transfer
$43
Interest if you stay
$2,762
Payoff time — transfer
1 yr 9 mo
Payoff time — stay
2 yr 3 mo
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The arithmetic in one line

A balance transfer is worth it when the transfer fee is less than the interest you would otherwise pay during the promotional period. At 25% APR, a $9,000 balance accrues roughly $1,900 in interest over 18 months. A 3% fee is $270. The comparison is rarely close.

Set the payment from the deadline, not the minimum

Divide the transferred balance by the number of promotional months to get the payment that clears it exactly in time. That is the number to automate. The card's minimum payment is deliberately far lower and is designed to leave a balance when the promotional rate expires.

Rules that catch people out

  • New purchases. On some cards these do not share the 0% rate, and payments may be applied to the promotional balance first — leaving purchases accruing interest.
  • Late payments. A single late payment can void the promotional rate entirely on many cards.
  • Transfer windows. The offer often requires the transfer within 60 to 120 days of opening the account.
  • Limits. Your approved credit line may be smaller than the balance you wanted to move.

Deferred interest is not the same thing

Store cards frequently advertise "no interest if paid in full within 12 months". If any balance remains at the deadline, interest is charged retroactively from day one. A true 0% balance transfer card does not do this — but read the terms rather than assuming.

The behaviour that decides the outcome

A transfer only helps if the original card is not used again. Freeing up a $9,000 limit and running it back up converts one debt into two. Move the balance, then put the old card somewhere inconvenient and set an automatic payment on the new one.

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Frequently asked questions

Does a balance transfer hurt my credit score?

A new account causes a small temporary dip from the hard inquiry, but total utilisation usually improves because your overall limit rises. Keep the old card open — closing it lowers your available credit and shortens your credit history.

What happens if I do not clear it in time?

The remaining balance starts accruing at the go-to APR, often above 20%. The saving still stands for the promotional months, but plan to finish inside the window.

Can I transfer to a card I already have?

Usually not — promotional transfer offers apply to new accounts. Some issuers extend targeted offers to existing customers; check your account's offers page.

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Disclaimer: results are estimates for general information only and do not constitute financial, tax or legal advice. Actual figures depend on your lender, credit profile and jurisdiction. Verify any number with a qualified professional before acting on it.