Balance Transfer Calculator
Calculate potential savings from transferring your credit card balance to a lower interest rate card. Compare fees, interest savings, and payoff timelines.
Current Credit Card
Balance Transfer Offer
Payment Strategy
Transfer Summary
Transfer Fee:
$0.00
Total Transfer Amount:
$0.00
New Monthly Payment:
$0.00
Payoff Date:
N/A
Savings Analysis
Interest Saved (3 years):
$0.00
Monthly Savings:
$0.00
Break-even Period:
0 months
Recommendation:
N/A
3-Year Cost Comparison
Current Card Total Cost:
$0.00
New Card Total Cost:
$0.00
Net Savings:
$0.00
Understanding Balance Transfers
A balance transfer moves existing credit card debt from one card to another, typically to take advantage of lower interest rates or promotional offers. This strategy can save significant money on interest charges if done correctly.
Types of Balance Transfer Cards
0% APR Introductory Cards
- 0% interest for 6-18 months
- Balance transfer fees (2-5%)
- Higher regular APR after promo
- Best for debt payoff plans
Low APR Cards
- Lower ongoing interest rates
- No promotional period
- Lower transfer fees
- Good for long-term debt
Cash Back Cards
- Earn rewards on purchases
- Higher APR than dedicated BT cards
- Balance transfer fees apply
- Good for ongoing spending
Business Cards
- Tax deductible interest
- Higher credit limits
- Business expense tracking
- Additional business perks
Balance Transfer Fees and Costs
| Card Type | Transfer Fee | Intro APR | Regular APR |
|---|---|---|---|
| Premium Rewards | 3-5% | 0% for 12-18 months | 16-25% |
| Cash Back | 3-4% | 0% for 12 months | 14-22% |
| Low APR | 2-3% | N/A | 10-15% |
| Business | 2-4% | 0% for 6-12 months | 13-20% |
Balance Transfer Strategies
Maximizing Balance Transfer Benefits
Timing Considerations
- Apply during promotional periods
- Check credit score before applying
- Time transfers to avoid due dates
- Plan payoff before promo ends
Fee Management
- Calculate break-even point
- Compare fee vs interest savings
- Look for fee waivers
- Consider multiple transfers
Payment Planning
- Increase payment amounts
- Use payment reminders
- Automate payments
- Track progress regularly
Risk Management
- Don't spend on new card
- Monitor promotional period
- Have backup payment plan
- Check for foreign transaction fees
When Balance Transfers Make Sense
Good Candidates:
- High current APR (20%+)
- Disciplined payment habits
- Can pay off during promo period
- Good to excellent credit score
- Available credit limit
Poor Candidates:
- Already have 0% APR card
- Cannot control spending
- Will max out new card
- Poor credit score
- Short promotional periods
Key Takeaways for Balance Transfers
- Calculate total savings including fees before transferring
- Have a payoff plan that fits the promotional period
- Don't use the new card for additional spending
- Monitor your credit score and utilization
- Consider multiple transfers if you have good credit
- Read all terms and conditions carefully
- Set up automatic payments to avoid late fees
- Keep old accounts open for credit utilization