Balance Transfer Calculator

You move what you owe to a card that charges a low or 0% introductory rate, usually for a fee. You save the interest your current card would have charged, minus the fee. Paying 300 a month on 5,000 at 24% costs 1,143.34 of interest over 21 months; moving it to a 0% card for 18 months with a 3% fee costs just the 150.00 fee, a saving of 993.34.

Usually, if you'd otherwise pay interest for more than a few months. It isn't when the balance is small and you'd clear it quickly anyway: 1,000 at 18% paid off at 500 a month costs only 23.07 of interest, less than a 5% fee of 50.00. The calculator shows both totals side by side.

Add the fee to the balance and divide by the number of intro months. 5,000 plus a 3% fee is 5,150; over 18 months that's 286.11 a month. Pay at least that and the balance is gone before any interest starts.

Whatever is left starts costing the card's normal APR. Paying 200 a month instead of 300 in the example leaves 1,550.00 owed after 18 months; at 22% that adds 137.52 of interest before it's cleared, still well below staying put.

The fee is added to your new card's balance on the day of the transfer. While the intro rate is 0% it costs nothing more, but any of it still unpaid when the intro period ends is charged the normal rate like the rest of the balance.

Paying late can end the intro rate early on many cards, and new purchases on the transfer card may be charged a higher rate straight away. Check the offer's terms for the fee, the length of the intro period and the rate afterwards, and keep paying at least the minimum every month.