Credit card debt can be heavy, especially with hundreds of dollars a month in interest. With rates above 20% and high minimum payments, some credit cards are impossible to pay off.
But transferring your credit card balance to another card can save you thousands of percent and help you get out of debt faster.
This balance transfer calculator is a quick and easy way to find out how much money you can save by transferring credit card debt to a low interest balance transfer card.
Simply enter your details below to see if you should use a balance transfer card.
How to use the balance transfer calculator
In order to use the Balance Transfer Calculator, you will first need to gather some information about your current credit card and the new balance transfer card you are considering. You need to know:
- Your total balance
- Interest rates on both cards
- Monthly payments
- Details about the introductory interest rate for the new card
Here’s how to fill in each of those details in the calculator:
- Balance transfer amount. This is the total amount you transfer from your old credit card to your new one. You can find your current balance on your most recent credit card statement.
- Interest rates. You will need to enter your current credit card interest (should be shown on your statement) as well as the new credit card rate. Most balance transfer credit cards have a starting rate and a regular rate (check the card’s terms and conditions for details). Enter the starting rate, as well as the number of months of the introductory period.
- Monthly payment. Enter the amount of the monthly payment you are currently paying on your card, be it the minimum payment or any other amount. Then enter the new expected monthly payment on the new card. It may be the same amount, but if you pay more, you can pay off your debt faster (and avoid additional interest payments after the rate period ends).
After you enter your information, click calculate to see the results.
How much can you save with a balance transfer?
The Balance Transfer Calculator will take the monthly payment you entered and compare your existing credit card to popular balance transfer credit card offers. We’ll look at two things:
- How much you will pay in interest and fees until the balance is paid in full.
- How long will it take you to fully pay off your balance, assuming a fixed monthly payment and that you do not make new debits from the card.
Here is how the results will be displayed on the calculator:
- Current credit card results. This shows how long it will take to pay off your current credit card, as well as the total interest you expect to pay.
- New credit card results. This shows the details of your new card, including how long it will take to pay off, as well as the total percentage. Balance transfer fee included (estimated at 3% of total balance).
- Total savings on balance transfer. If you compare the total amount of interest paid on your old credit card versus your new one, this is the amount of money you could save on interest by using a balance transfer credit card.
Using this calculator is a quick way to determine if you should sign up for a balance transfer card.
A quick note on balance transfer feesA: Most balance transfer cards have a 3% to 5% fee on all balance transfers. The fee is a percentage of the total balance you transfer from your old card. In our calculator, we use a balance transfer fee of 3%, which is the most common. If the card you subscribe to has a higher fee, you will need to deduct the difference from your total savings.
Why is it written that I will pay more?
If you see a negative number in the “Total savings when transferring balance” section, it means that you can actually pay. more money if you transfer the balance to this card.
Why did this happen? Well, there are two common reasons:
- You will pay off your debt so quickly that the interest you pay on your existing card will be less than the balance transfer fee.
- The typical APR of a new card is significantly higher than your existing APR, and it will take you many years to pay off your debt in full. The higher regular annual interest rate on the new card will void any savings during the promotional period.
Can I transfer balance from more than one card?
Yes you can. But for simplicity, we only allow you to calculate savings on one card at a time. You can use the same balance transfer card data to calculate the savings on each card you plan to transfer to a new one.
Summary
Our balance transfer calculator will help you estimate how much you could save by transferring your existing credit card debt to a new card with a low initial balance transfer interest rate.
We estimate potential savings based on how much you tell us you can pay each month. When deciding whether you can save money with a balance transfer, keep in mind that you will need very good credit to get approved for these offers, and that your actual savings may vary depending on your payment schedule and typical annual interest rate. offered on the new card (they may be higher than in our calculator, depending on your ability to pay).
