Credit Cards Balance Transfers Off Calculator With Interest

Balance Transfer Payoff Time Formula:

\[ T = \frac{\log\left(\frac{P + F}{(P + F) - D \times R}\right)}{\log(1 + R)} \]

Transferred Balance (P):

Transfer Fee (F):

Monthly Payment (D):

APR (Annual Interest Rate):

Time to Pay Off:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Balance Transfer Payoff Time Calculation?

The balance transfer payoff time calculation estimates how long it will take to pay off a credit card balance transfer including interest charges. It accounts for the transferred amount, any transfer fees, your monthly payment, and the interest rate.

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ T = \frac{\log\left(\frac{P + F}{(P + F) - D \times R}\right)}{\log(1 + R)} \]

Where:

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

Explanation: The formula calculates how many months it will take to pay off the balance when making fixed monthly payments that include interest charges.

3. Importance of Calculating Payoff Time

Details: Knowing your payoff time helps you understand the true cost of a balance transfer and plan your finances accordingly. It shows whether the transfer will save you money in the long run.

4. Using the Calculator

Tips: Enter the transferred balance, any transfer fee, your planned monthly payment, and the APR. All values must be positive numbers. The monthly payment must be greater than the monthly interest charge for the balance to ever be paid off.

5. Frequently Asked Questions (FAQ)

Q1: What if my monthly payment only covers the interest?
A: The calculator will show "∞" because you would never pay off the principal balance in this case.

Q2: Does this account for minimum payments?
A: No, this assumes fixed monthly payments. Minimum payments typically extend payoff time significantly.

Q3: How accurate is this calculation?
A: It's mathematically precise for fixed payments and interest rates. Actual results may vary if payments or rates change.

Q4: Should I include the transfer fee in the balance?
A: Yes, the calculator automatically adds the transfer fee to your total balance.

Q5: What's a good target payoff time?
A: Ideally, pay off before any promotional rate expires (typically 12-18 months) to maximize savings.