Balance Transfer Savings Calculator
Balance Transfer Savings is evaluated from Balance to Transfer, Current Card APR and Promotional Period. The calculation reports Transfer Fee, Interest Without Transfer and Interest With Transfer.
Results
About the Balance Transfer Savings Calculator
The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.
Formula basis:
Transfer Fee = Balance x Fee%
Total Balance After Transfer = Balance + Fee
Interest Without Transfer = Balance x (Current APR / 1200) x Promo Months
Interest With Transfer = New Balance x (Promo APR / 1200) x Promo Months
Net Savings = Interest Avoided - Transfer Fee
Monthly Payment to Pay Off = New Balance / Promo Months
Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.
Formula & How It Works
The calculation applies the following relations exactly as recorded in the metadata: Transfer Fee = Balance x Fee% Total Balance After Transfer = Balance + Fee Interest Without Transfer = Balance x (Current APR / 1200) x Promo Months Interest With Transfer = New Balance x (Promo APR / 1200) x Promo Months Net Savings = Interest Avoided - Transfer Fee Monthly Payment to Pay Off = New Balance / Promo Months Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.
Worked Examples
Example 1: Standard 18-Month 0% Transfer
Inputs
With Balance to Transfer = 6,000, Current Card APR = 22.99, Promotional Period = 18 and Promo APR = 0 as the stated inputs, the result is Transfer Fee = $180, Interest Without Transfer = $2,069 and Interest With Transfer = $0. Each value corresponds to the declared output fields.
Example 2: High-Balance Transfer — Worth It?
Inputs
With Balance to Transfer = 15,000, Current Card APR = 26.99, Promotional Period = 21 and Promo APR = 0 as the stated inputs, the result is Transfer Fee = $750, Interest Without Transfer = $7,085 and Interest With Transfer = $0. Each value corresponds to the declared output fields.
Example 3: Small Balance — Borderline Case
Inputs
With Balance to Transfer = 1,200, Current Card APR = 19.99, Promotional Period = 12 and Promo APR = 0 as the stated inputs, the result is Transfer Fee = $36, Interest Without Transfer = $240 and Interest With Transfer = $0. Each value corresponds to the declared output fields.
Example 4: Partial Payoff — Not Cleared in Promo
Inputs
With Balance to Transfer = 8,000, Current Card APR = 23.99, Promotional Period = 15 and Promo APR = 0 as the stated inputs, the result is Transfer Fee = $240, Interest Without Transfer = $2,399 and Interest With Transfer = $0. Each value corresponds to the declared output fields.
Common Use Cases
- Calculate how much interest you save with a 0% balance transfer offer
- Determine the monthly payment needed to pay off balance before promo ends
- Evaluate if a balance transfer fee is worth the interest savings