Balance Transfer Formulas:
From: | To: |
This calculator helps determine how long it will take to pay off a credit card balance transfer, accounting for promotional 0% APR periods and post-promotional interest rates.
The calculator uses two formulas:
Where:
Explanation: The first formula calculates payoff time during the 0% period. If not paid off, the second formula calculates time needed after the promotional period ends.
Details: Understanding payoff timelines helps consumers make informed decisions about balance transfers and avoid unexpected interest charges after promotional periods end.
Tips: Enter the transferred balance, transfer fee percentage, monthly payment amount, APR, and promotional period length. All values must be positive numbers.
Q1: What's a typical balance transfer fee?
A: Most cards charge 3-5% of the transferred amount, though some offers have 0% fees.
Q2: How can I pay off my balance faster?
A: Increase monthly payments, make additional payments when possible, or consider multiple transfers if you can't pay during the promo period.
Q3: What happens if I don't pay off during the 0% period?
A: Interest accrues on the remaining balance at the regular APR, often retroactively if the card has deferred interest.
Q4: Are balance transfers always a good idea?
A: They can be helpful for debt consolidation but only if you can pay off during the promo period or manage the post-promo rate.
Q5: How accurate is this calculator?
A: It provides estimates assuming fixed payments and rates. Actual terms may vary based on your card agreement.