Compare clearing a card balance at its current rate with clearing it during a balance transfer promotion, including the transfer fee.
A balance transfer only saves money if you clear the balance before the promotional rate ends, because any amount left over then reverts to a much higher rate. This calculator works out the level monthly payment needed to clear the balance over the promotional period at your current card's rate and at the promotional rate, then compares them.
Enter the balance, your current purchase rate, the promotional rate, the length of the promotion in years (1.5 = 18 months) and the transfer fee. Break-even is the fee divided by the monthly saving. Net saving is the monthly saving × months − fee.
Worked example (illustrative): $8,000 at 20.99% versus 0% for 18 months with a 2% transfer fee ($160). Clearing $8,000 in 18 months costs about $521.92 a month at 20.99% and $444.44 a month at 0%. The difference is about $77.48 a month, the fee is covered in about 3 months, and the net saving is about $1,235.
The key output is the promotional monthly payment: if you cannot pay about that much every month, part of the balance will revert. Limits: the tool does not model the revert rate, new purchases on the new card (which may not get interest-free days while a transferred balance remains) or annual fees. Read the balance transfer revert rate example first.
Worked Examples and Checklists
How an Australian 0% balance transfer works, what happens to the balance when the promotion ends, the monthly payment needed to clear it in time, and the traps on new purchases.
