Worked example: $5,000 moved to a 0% intro APR card for 15 months
Moving $5,000 from a card charging 21% APR to a card with 0% for 15 months and a 3% fee adds a fee of $150.00, so $5,150.00 moves across. Paying $400 a month clears the new balance in 13 months, inside the intro period, so the new card costs nothing beyond the fee.
The old card would take 15 months at $400 a month and cost $692.36 in interest. After the fee, the transfer saves $542.36. To clear the balance in exactly 15 months you would pay $343.33 a month.
Checked against a published table
NerdWallet's guide works through $3,000 at 16% paid at $190 a month and shows about $390 of interest on the old card. This calculator, with a 0% offer and no fee, gets $391.11 of interest on the old card over 18 months, which is the saving when there is no fee. Real offers usually charge a fee, which comes off that figure.
Percentage fee and minimum fee
Many US cards charge a transfer fee of a percentage of the amount or a minimum, whichever is more; NerdWallet gives $5 or $10 as typical minimums and 3% to 5% as typical percentages. This calculator takes the larger of the two. On a $100 transfer a 3% fee is $3, so a $5 minimum applies and the fee is $5.00.
How the rate is turned into interest
US card APRs are quoted as a nominal annual rate: the periodic rate times the number of periods in a year (Regulation Z Appendix J). The calculator divides the APR by 12 for the monthly rate, applies it to the balance and then takes your payment. The saving is the total paid on the old card minus the total paid on the new one, fee included.
Under Regulation Z 1026.53, a payment above the minimum is generally applied to the balance with the highest APR first. If you carry other balances on the new card, a promotional balance may be paid last, so keep new spending off a card you are using for a transfer.
What this calculator leaves out
It assumes one transfer, equal monthly payments and no new purchases. It does not model minimum payments, deferred-interest offers, the credit score needed for the card or hard inquiries. Check the card's terms for how long you have to complete the transfer and what rate applies afterwards.
To compare a transfer card with a personal loan, use the balance transfer vs personal loan calculator.
To see how long a card takes to clear without a transfer, use the credit card repayment calculator.
Use the right country page
This page uses US terms, dollars and the nominal APR convention. For a UK card, with pounds and the effective APR convention, choose United Kingdom above the form to open the UK balance transfer loan calculator. Inputs reset and amounts are not converted.
Inputs for the US balance transfer loan calculator
Amount to transfer
The card balance you move, before the transfer fee.
Current card APR
The yearly rate on the card you are moving the balance from.
Monthly payment
What you pay each month on the old card and on the new one.
Promotional rate and period
The intro APR on the transferred balance and how many months it lasts. Type 0 for a 0% offer.
Balance transfer fee and minimum fee
A percentage of the amount moved, and the smallest fee the card charges. The larger applies.
APR after the promotion
The rate on whatever is left once the intro period ends.
CALCULATOR QUESTIONS
US balance transfer loan calculator questions
How much does a balance transfer save?
It depends on the balance, the old card's APR and how fast you pay. Moving $5,000 from a card at 21% APR to a 0% card for 15 months with a 3% fee, paying $400 a month, saves $542.36.
How is the balance transfer fee calculated?
As a percentage of the amount, with a minimum on many cards. A 3% fee on $5,000 is $150.00. This calculator uses whichever of the percentage and the minimum is larger.
What happens when the intro APR ends?
Whatever is left is charged at the card's regular APR. If your payment clears the balance inside the intro period, as in the example, you pay no interest at all on the new card.
Is a balance transfer better than a personal loan?
It can be when you can clear the debt inside the intro period. A loan has a fixed payment and term but charges interest from the start and may charge an origination fee. The balance transfer vs personal loan calculator compares them.
Which payment is applied to which balance?
Under Regulation Z, payments above the minimum generally go to the highest-APR balance first, which can leave a promotional balance for last when you carry other balances on the same card.