Balance Transfer Credit Card Calculator

Balance Transfer Equations:

\[ T = \frac{P + F}{D} \text{ (during 0% period)} \] \[ T = \frac{\log\left(\frac{P + F}{(P + F) - D \times R}\right)}{\log(1 + R)} \text{ (post-promotional)} \]

Transferred Balance (P):

Transfer Fee Percentage (F):

Monthly Payment (D):

APR After Promo Period (R):

0% Promo Period:

months

Time to Pay Off:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Balance Transfer Calculator?

The Balance Transfer Credit Card Calculator estimates the time required to pay off a credit card balance transfer, accounting for transfer fees and promotional interest periods.

2. How Does the Calculator Work?

The calculator uses two equations:

\[ T = \frac{P + F}{D} \text{ (during 0% period)} \] \[ T = \frac{\log\left(\frac{P + F}{(P + F) - D \times R}\right)}{\log(1 + R)} \text{ (post-promotional)} \]

Where:

\( P \) — Transferred balance
\( F \) — Transfer fee (e.g., 3% of P)
\( D \) — Monthly payment
\( R \) — Monthly interest rate (APR / 12, as a decimal)
\( T \) — Time in months

Explanation: The first equation calculates payoff during the 0% promotional period. The second equation calculates payoff after the promotional period ends.

3. Importance of Balance Transfer Calculations

Details: Understanding the true cost and payoff timeline helps consumers make informed decisions about balance transfers and avoid unexpected interest charges.

4. Using the Calculator

Tips: Enter all required values accurately. Remember that higher monthly payments reduce payoff time and total interest paid after the promotional period.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical balance transfer fee?
A: Most cards charge 3-5% of the transferred amount, though some offers have no fee.

Q2: Does the calculator account for minimum payments?
A: No, it assumes fixed monthly payments. Minimum payments would extend payoff time.

Q3: What happens if I don't pay off during the promo period?
A: Interest accrues on the remaining balance at the regular APR, often retroactively if not paid in full.

Q4: Are balance transfers always beneficial?
A: Only if you can pay off during the promo period or the post-promo interest is lower than your current rate.

Q5: How can I pay off faster?
A: Increase monthly payments, make biweekly payments, or pay lump sums when possible.