The Finance Algorithm

Balance Transfer Calculator

Calculate savings from transferring your balance to a 0% interest card

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$8k
%
21.24%
%
0%

0% for promotional offers

24

Length of promotional period

%
2%

Usually 1-3% of transferred amount

$
$400
$
$0
%
22%

Rate that applies after 0% ends

The button asks our AI to explain these figures in words.

Balance transfer

Net savings

$1,802

after all fees

Transfer fee

$160

one-off cost

Clears in promo?

Yes

21 of 24 months

Required payment

$340/mo

to clear within 24 months

Keep card vs balance transfer

Total includes interest + transfer fee + annual fees. The lower bar wins.

$9,962Keep card$8,160Transfer

Cost of carry

Interest avoided during the 0% promo period drives the savings; transfer + annual fees are the cost.

$1,962Keep card$160Transfer

Promo period & beyond

0% rate for 24 months, then 22% if any balance remains.

$0$2,040$4,080$6,120$8,160Mo 0Mo 5Mo 10Mo 15Mo 20Mo 25

Paying down the current card at your monthly amount

At the full interest rate, the balance falls more slowly.

$0$2,000$4,000$6,000$8,000Mo 0Mo 5Mo 10Mo 15Mo 20Mo 25
Three rules for balance transfers. (1) Set up auto-pay: one missed minimum and most lenders revoke the 0% rate. (2) Don't spend on the new card: purchases typically attract a different (high) rate. (3) Pay off before the promo ends; otherwise the revert rate (22%) can wipe out the savings.

How it works

A balance transfer can save a lot of interest, but only if you clear the balance before the low rate ends. This works out what you'd actually save once the transfer fee is counted.

  1. 1Enter your current balance and interest rate
  2. 2Add the new card's transfer terms (rate, period, fee)
  3. 3Set your planned monthly payment
  4. 4Include any annual fee on the new card
  5. 5Compare total cost with and without transfer

The figures today

As of 7 November 2026, the lowest credit card purchase rate is 7.49%, from Unity Bank's Low Rate Visa Credit Card, while the typical best across 51 institutions is 12.49%.

Credit card rates

Worked examples

$8,000 Balance Transfer

$8,000 moved from a 20% card to 0% for 24 months with a 2% transfer fee, paying $400 a month.

Current balance to transfer
$8,000
Current card interest rate
20%
Balance transfer rate (promo)
0%
0% period (months)
24
Balance transfer fee
2%
Monthly payment
$400
New card annual fee
$0
Rate after promo period
22%

The fee is $160. Staying put, $400 a month clears the debt in 25 months with $1,813 of interest. After the transfer it's cleared in 21 months, inside the 0% period, for the $160 fee only - $1,653 less. Paying at least $340 a month clears it before the rate reverts.

Questions people ask

Is a balance transfer worth it?
It can be, if you clear most or all of the balance during the promotional period and the transfer fee is less than the interest you'd otherwise pay - the calculator compares the two.
What happens if I don't pay it off in time?
Whatever's left is charged the revert rate from then on. You keep what you saved during the promotional period, but the remaining balance costs more.
Can I do another balance transfer when 0% ends?
You can apply, but each application is recorded on your credit report as an enquiry, and moving debt around doesn't pay it off. Plan to clear the balance rather than roll it over.

The terms, in plain English

Balance Transfer
Moving debt from one credit card to another, usually to take advantage of a lower interest rate.
Promotional Rate
A temporary low or 0% interest rate offered for a set period to attract balance transfers.
Revert Rate
The standard interest rate that applies after the promotional period ends.

Official sources

Interest Calculator

Calculate current interest costs

Payoff Calculator

Plan your payoff strategy

Card Comparison

Compare balance transfer cards