Balance Transfer Calculator

What Is a Balance Transfer?

A balance transfer is when you move debt from one credit card to another, usually to get a lower interest rate.

Most balance transfer offers include:

• A 0% or low introductory APR for a fixed number of months
• A balance transfer fee, often 3% to 5% of the amount moved
• A regular APR that applies after the intro period ends

The key idea is simple. If the interest you avoid is more than the transfer fee and any later interest, you save money.

A balance transfer calculator checks that math for you.

What a Balance Transfer Calculator Does

A balance transfer calculator compares two paths:

1. Keeping your balance on the current card
2. Moving the balance to a new card with a promotional rate

It then shows:

• Total interest paid in each case
• Total fees and interest after the transfer
• How long payoff takes
• Your potential net savings

Instead of guessing, you see the outcome in dollars and months.

Inputs Used in This Calculator (Plain English)

The calculator you shared uses realistic inputs that match how credit cards actually work.

Here’s what each field means.

Current Card Balance

This is how much you currently owe on your credit card.

Example:
If your statement shows $5,000, enter 5000.

Current Card APR

This is the interest rate on your existing card.

Example:
If your card charges 24.99% APR, enter 24.99.

Transfer Fee

This is the fee charged to move the balance to the new card.

Most cards charge 3% to 5%.
This calculator defaults to 3%, which is common.

Important detail:
The fee is added to your balance. You pay interest on it if the promo period ends before payoff.

Introductory APR

This is the interest rate during the promotional period.

Many offers are 0%, which is why the default is set to 0.

Intro Period (Months)

This is how long the promotional rate lasts.

Common ranges:

• 12 months
• 15 months
• 18 months

Once this period ends, regular interest applies.

Monthly Payment

This is how much you plan to pay every month.

This number matters more than most people realize. A low payment can erase the benefit of a balance transfer.

How the Calculator Works Behind the Scenes

You don’t need to understand the code, but it helps to know the logic.

Step 1: Simulate the Old Card

The calculator:

• Applies your current APR
• Adds interest monthly
• Subtracts your monthly payment
• Tracks total interest and payoff time

If your payment is too low to cover monthly interest, it stops and warns you.

Step 2: Simulate the New Card

Next, it:

• Adds the balance transfer fee to your balance
• Applies the intro APR for the promo months
• Switches to the old APR after the promo ends (if needed)
• Tracks total interest, fees, and payoff time

This reflects how real balance transfer offers behave.

Step 3: Compare and Calculate Savings

Finally, it compares:

• Total interest on the old card
• Total fees plus interest on the new card

The difference is shown as Potential Net Savings.

If the number is zero or negative, the transfer may not be worth it.

Understanding the Results Section

Once you click Calculate Savings, you’ll see three key areas.

Potential Net Savings

This is the headline number.

It shows how much money you could save by transferring the balance, after fees.

If it shows $1,200, that means:

• Same debt
• Same payment
• Less money lost to interest

Existing Card Breakdown

This shows:

• Total interest paid if you do nothing
• How many months it takes to pay off the balance

This gives you a baseline to compare against.

New Card Breakdown

This shows:

• Total fees plus interest after the transfer
• Time to pay off the balance

Seeing fees and interest combined is important. Fees are a real cost, even if they don’t feel like interest.

Payoff Tip Message

The calculator also checks if your payment clears the balance during the intro period.

• If yes, it congratulates you
• If no, it tells you exactly how much to pay per month to avoid post-promo interest

This small detail can save hundreds of dollars.

Why Monthly Payment Matters More Than APR

Many people focus only on the 0% APR. That’s a mistake.

If your payment is too low:

• The balance won’t be paid off in time
• Interest kicks in after the promo
• Savings shrink or disappear

This calculator makes that risk visible. It doesn’t just show rates. It shows outcomes.

When a Balance Transfer Usually Makes Sense

A balance transfer often works well if:

• Your current APR is high
• The transfer fee is reasonable
• You can pay off most or all of the balance during the promo period
• You stop using the old card for new spending

The calculator helps confirm whether these conditions apply to you.

When a Balance Transfer May Not Be Worth It

A balance transfer may not help if:

• Your monthly payment is very low
• The promo period is short
• The transfer fee is high
• You plan to keep adding new charges

In these cases, the calculator will usually show low or zero savings.

Why This Calculator Is Practical

This tool is useful because it:

• Uses monthly compounding, like real cards
• Includes transfer fees in the balance
• Accounts for post-promo interest
• Flags payments that won’t reduce debt

It doesn’t oversell balance transfers. It shows the trade-offs clearly.