1. What is the 0% Balance Transfer Calculator?

This calculator estimates how long it will take to pay off a credit card balance transferred to a 0% APR offer, using NerdWallet's methodology. It helps you plan your debt payoff strategy.

2. How Does the Calculator Work?

The calculator uses the simple payoff equation:

Where:

• \( T \) — Time to payoff (months)
• \( P \) — Principal balance including transfer fee ($)
• \( D \) — Monthly payment amount ($)

Explanation: The equation assumes 0% interest during the promotional period and fixed monthly payments. It calculates how many months are needed to fully pay off the balance.

3. Importance of Payoff Time Calculation

Details: Knowing your payoff time helps ensure you can clear the balance before the promotional period ends, avoiding high interest rates that typically follow.

4. Using the Calculator

Tips: Enter your total balance (including any transfer fees) and your planned monthly payment. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I include the balance transfer fee?
A: Yes, always include the transfer fee (typically 3-5% of the balance) in your principal amount for accurate calculations.

Q2: What if I can't pay off before the promo period ends?
A: Consider increasing your monthly payment or transferring again to another 0% offer (watch for additional fees).

Q3: Is this calculator accurate for all situations?
A: It assumes consistent monthly payments and no additional charges to the card. Actual results may vary if spending continues.

Q4: How does this compare to snowball/avalanche methods?
A: This calculates payoff time for a single balance transfer. For multiple debts, consider those methods after transfer.

Q5: What's the ideal payoff time?
A: Aim to pay off before the promotional period ends (typically 12-21 months) to avoid interest charges.