Balance Transfer Calculator
Is a 0% balance transfer worth the fee? Interest and months on both cards, the balance left when the promotion ends, the monthly payment that clears it in time, and the net saving.
| Stay on the current card | — |
|---|---|
| Transfer: fee added to the balance | — |
| Transfer: payoff at your payment | — |
| Balance left when the promotion ends | — |
| Payment needed to clear it within the promotion | — |
| Total cost: stay vs transfer | — |
| Verdict | — |
In short
A balance transfer pays off when the interest saved exceeds the fee and the balance is cleared inside the promotion: 8,000 at 24.99% paid at 400 a month costs about 2,455 in interest, while a 0% card for 18 months with a 3% fee (240) costs about 286 in total — saving roughly 2,170. The payment that clears it in time is the balance plus fee divided by the promotional months (458).
Who this is for: Cardholders deciding whether a 0% balance transfer offer beats staying put.
When a balance transfer wins
- The fee is the price: 3% of 8,000 is 240 up front. At 25% APR the old card charges about 167 a month in interest at first, so the fee is recovered in under two months — if your payment then goes to principal.
- Clear it inside the promotion: the payment needed is simply balance (with fee) ÷ promotional months. The calculator shows it; anything left when the promotion ends is charged at the go-to rate, often higher than the card you left.
- Do not spend on the new card: purchases may carry interest from day one and complicate payment allocation.
- Credit impact: a new application and a high utilisation on one card can dip your score briefly; closing the old card can too. Keep it open with a zero balance.
- Compare with a consolidation loan (fixed APR, fixed term) if you cannot clear the balance within the promotion.
See also: Credit Card Payoff Calculator.
Assumptions
- Stay: monthly interest at the current APR, fixed payment. Transfer: fee added to the balance, promotional APR for the promotional months, then the go-to APR.
- Balance left at promotion end and the level payment that clears it in time (annuity at the promo rate).
- No new purchases or missed payments.
Worked example
Staying: 27 months and about 2,455 interest. Transferring: balance becomes 8,240; at 400 a month 7,200 is cleared inside the promotion, leaving about 1,040 at 27.99% — three more months and about 46 interest. Total cost 286 vs 2,455 — saves about 2,170. Paying 458 a month instead clears it inside the 18 months with zero interest.
Frequently asked questions
Is a balance transfer worth it with a 3% fee?
Almost always when the current APR is above 15% and you will pay it off within the promotion; the fee equals about six weeks of interest at 25%.
What happens when the 0% period ends?
Any remaining balance is charged at the card's standard go-to rate; the calculator shows the balance left and the payment that avoids it.
Can I transfer a balance twice?
Yes, to another 0% card when the first promotion ends, paying another fee — common in the UK, less so in the US where new-card approvals are tighter.
Does it hurt my credit score?
A hard search and a new account can lower it a few points short-term; paying the balance down faster raises it over time.
How is the transfer fee charged?
As a one-off percentage of the amount moved (commonly 3–5%), added to the new card's balance on day one.
Can I pay off a 0% card early?
Yes, with no penalty — clearing it before the promotion ends avoids the go-to rate entirely.
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