Balance Transfer Equations:
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The Credit Card Balance Transfer Calculator estimates how long it will take to pay off a transferred balance, accounting for transfer fees, promotional 0% APR periods, and the post-promotional interest rate.
The calculator uses two equations:
Where:
Explanation: The first equation calculates payoff time during the 0% promotional period. If balance remains, the second equation calculates time needed after promotional period ends.
Details: Understanding payoff time helps determine if a balance transfer makes financial sense and ensures you can pay off the balance before high interest rates apply.
Tips: Enter the transferred balance, transfer fee percentage, your planned monthly payment, the post-promotional APR, and the length of the 0% promotional period.
Q1: What's a typical balance transfer fee?
A: Most cards charge 3-5% of the transferred amount, often with a minimum fee (e.g., $5 or $10).
Q2: Should I transfer my entire balance?
A: Only transfer what you can pay off during the promotional period to avoid high interest later.
Q3: What happens if I don't pay in full during 0% period?
A: Interest accrues on the remaining balance at the regular APR, which is often high (15-25%).
Q4: Are there alternatives to balance transfers?
A: Personal loans or debt management plans may offer lower fixed rates without transfer fees.
Q5: How can I pay off faster?
A: Increase monthly payments, make biweekly payments, or use windfalls (tax refunds, bonuses) to pay down principal.