1. What is the Balance Transfer Payment Calculator?

This calculator estimates how long it will take to pay off a credit card balance transfer after the promotional period ends, including the impact of interest charges and any transfer fees.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( P \) — Transferred balance ($)
• \( F \) — Transfer fee ($)
• \( D \) — Monthly payment ($)
• \( R \) — Monthly interest rate (APR / 12, as decimal)
• \( T \) — Time to pay off (months)

Explanation: The formula calculates how many months it will take to pay off the balance when accounting for compound interest.

3. Importance of Calculating Payoff Time

Details: Understanding the true cost and duration of a balance transfer helps consumers make informed decisions about debt repayment strategies and compare credit card offers.

4. Using the Calculator

Tips: Enter the balance transfer amount, any transfer fee (typically 3-5% of balance), your planned monthly payment, and the APR that will apply after the promotional period ends.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low to cover interest?
A: The calculator will indicate if your payment is insufficient to ever pay off the balance (only covering interest).

Q2: Does this include the promotional period?
A: No, this calculates payoff time after any 0% APR promotional period ends.

Q3: How accurate is this calculation?
A: It assumes fixed payments and interest rate. Actual time may vary if payments or rates change.

Q4: Should I include the transfer fee in the balance?
A: The calculator accounts for it separately, but you should enter the actual fee amount.

Q5: What's the best strategy for balance transfers?
A: Pay off during the 0% period if possible, or ensure payments will clear the balance in reasonable time after.