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Credit Card Balance Transfer Calculator

Last Updated: May 15, 2025

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Created by
Saqib Hanif
Saqib Hanif

Saqib Hanif is the CEO and founder of Calculator Value. He builds calculators and educational content across sports, math, and science, and supports a limited set of construction-related calculators. Read full profile

Balance Transfer Calculator Accuracy: This calculator performs a comprehensive analysis of whether transferring your credit card balance to a new card is financially beneficial. It uses precise interest compounding formulas to compare your current card to a balance transfer offer.

The calculator uses the following key formulas:

Monthly Interest Calculation:

Monthly Interest=Balance×APR100×12

Payment Application:
For each monthly payment, interest is calculated first, then the remaining amount reduces the principal:

Principal Reduction=Monthly Payment−Monthly Interest

Total Cost Comparison:

Current Card Total Cost=Original Balance+Total Interest Paid Balance Transfer Total Cost=Original Balance+Transfer Fee+Total Interest Paid

Example: For a balance of 5,000 dollars at 20% APR with 200 dollars monthly payments:

  • Current card payoff: 33 months with 1,522.10 dollars in interest
  • Balance transfer with 3% fee, 0% APR for 12 months, then 18% APR:
    • Transfer fee: 150 dollars
    • New starting balance: 5,150 dollars
    • Total interest paid: 353.24 dollars
    • Payoff time: 28 months
    • Total savings: 1,018.86 dollars

The calculator simulates each monthly payment for both scenarios until the balance is completely paid off, accounting for different interest rates during and after the promotional period.

  • Industry-Standard Formulas: The formulas and methods used in this calculator follow widely accepted standards in Financial.
  • Careful Verification: The calculator is tested to ensure it behaves correctly across a range of inputs.
  • Continuous Updates: The calculator is updated as needed to reflect better accuracy and usability.

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Are you looking for a way to calculate a credit card balance transfer and want to get recommendations through comparison? In this post, I will guide you step-by-step through what credit card balance transfer is, and how it is calculated, along with an example and FAQs.

What Is a Credit Card Balance Transfer?

In simple words, a credit card balance transfer is a method of transferring debt from one credit card (with a high interest rate) to another credit card with a lower interest rate (typically offering lower or even 0% interest rate).

Why do people actually transfer their debt from one credit card to another? People often do this to save money on interest and pay off the debt faster.

Credit card balance transfer cartoon

What is the Credit Card Balance Transfer Calculator — And how it is calculated?

Credit Card Balance Transfer Calculator is an online tool that helps you compare the balance transfer recommendations based on the user's entered data. Here is how it's calculated in simple terms:

The calculator allows users to compare:

  • A debt repayment plan with your existing credit card
  • A new plan on another credit card that typically includes balance transfer with a lower APR (Annual Percentage Rate). 

What the calculated result shows:

  • It tells you whether moving balance is beneficial
  • Total cost difference
  • How much you will pay interest rate in both cases
  • How long will it take to pay off your debt

What does this calculator require inputs data?

Our calculator requires the following inputs to give you an accurate result:

  • Current Balance - how much balance you owe on your credit card
  • Current APR - this is annual interest rate on your existing card
  • Monthly Payment - What you plan to pay the debt every month
  • Transfer Fee Rate - In percentage, the fee charged for transferring the balance
  • Promotional APR - This is interest rate on the new card with limited time
  • Promotional Period - This is duration in months of the promo APR (Annual Percentage Rate)
  • Regular APR (after promo) - It is interest rate that start after promotional period ends

Real World Example — Credit Card Balance Transfer

Imagine you are in the following credit situation and get balance transfer offer:

  • Current Balance = 5,000 dollars
  • Current APR = 20%
  • Monthly Payment = 200 dollars
  • Transfer Fee Rate = 3%
  • Promo APR = 0%
  • Promo Period = 12 months
  • Regular APR = 18%

Now let's perform step by step calculation to calculate if transferring is worth it:

  1. Transfer Fee = 5,000 dollars × 3% = 150 dollars
  2. New Balance = 5,000 dollars + 150 dollars = 5,150 dollars
  3. Current Card:
    • Interest builds quickly at 20%
    • Total Cost ≈ 6,880 dollars
    • Payoff Time ≈ 35 months
  4. Balance Transfer Card:
    • 0% interest for 12 months
    • 18% after that
    • Total Cost ≈ 6,200 dollars
    • Payoff Time ≈ 32 months

This mean that you can save around 680 dollars and also pay off the debt 3 months earlier.

Frequently Asked Questions

Is transferring your balance to another credit card always a good idea?

Yes, it can be, but not always, depending on situation. It may not save your money If the transfer fee is high or if you can't pay off the debt before the promotional ends.

What is a good transfer fee?

A good transfer fee is around 3% to 5%. Always compare the fee with your potential interest savings, a lower fee is better.

Can I include new purchases on the new card?

This calculator does not include new purchases on the new card. These purchases may not be covered by the promotional APR and could cost you more in interest.