Balance Transfer Calculator
Credit card debt at a typical purchase APR of 22-25% can be expensive to carry for long, and a 0% balance transfer card is one of the most direct ways to cut that cost — moving what you owe onto a card that charges no interest for a set introductory period, usually in exchange for a one-off fee. This calculator works out whether that fee is actually worth paying, based on how much you owe, how much you can repay each month, and what happens once the 0% period runs out.
Balance Transfer Savings Calculator
Compare staying on your current card vs doing a balance transfer — see exactly how much you could save.
Why 0% Balance Transfers Exist
Card providers offer 0% balance transfer periods to win new customers, betting that many people will not clear the balance before the offer ends and will revert to paying interest at the card’s standard rate. The offer itself is not free to the customer — it is paid for through the transfer fee charged upfront, typically 2-4% of the balance moved, taken as a lump sum added to what you owe on the new card.
Transfer offers vary widely between providers — some run for as little as 6 months, others for over 24, and the fee attached to a longer 0% period is often higher than for a shorter one, since the card provider is giving up more potential interest income the longer the offer runs. There is rarely a single “best” length; a longer period with a higher fee suits someone repaying slowly, while a shorter, cheaper offer can work out better for anyone who can clear the balance quickly regardless.
The Transfer Fee Trade-Off
A transfer fee is only worth paying if the interest it saves you is larger than the fee itself. On a £5,000 balance, a 3% fee costs £150 upfront — money added to your new balance from day one. Whether that £150 pays for itself depends entirely on how much interest you would otherwise have paid on the old card, which in turn depends on how quickly you can repay it. A large monthly payment relative to the balance can sometimes make a transfer barely worthwhile, since the interest saved over a short payoff period may not exceed the fee.
What Happens When the 0% Period Ends
Any balance still outstanding when the introductory period finishes reverts to the card’s standard APR, which is often similar to or higher than a typical credit card rate. This calculator splits the repayment into two phases to reflect that: first the 0% window, where every payment reduces the balance with no interest added, then a second phase at the card’s standard rate for whatever remains. If your monthly payment is large enough to clear the balance entirely within the 0% period, the second phase never applies and the transfer fee becomes the only cost of the exercise.
Does It Actually Save You Money?
The calculator compares two complete scenarios side by side: staying on your current card at its existing APR until the balance is cleared, against transferring today and following the same monthly payment on the new card. The comparison includes the transfer fee on one side and the full ongoing interest cost on the other, so the “you save” figure reflects the entire picture rather than just the introductory period. If you are also comparing whether a transfer or a fixed personal loan works out cheaper for the same debt, our Debt Consolidation Calculator runs that comparison directly.
It is worth checking the numbers even when a transfer looks obviously attractive — a very short 0% period combined with a large fee can occasionally cost more than simply paying down the existing card faster. Our Credit Card Repayment Calculator shows what staying put and increasing your monthly payment would look like on its own.
A Worked Example
Say you owe £4,000 on a card charging 24.9% APR, and you can afford £250 a month. Left on the current card, that debt would take around 18 months to clear and cost roughly £860 in interest along the way. Transfer that same £4,000 to a card offering 18 months at 0% for a 3.5% fee (£140), and the entire £250 monthly payment goes toward the balance itself for the whole term, clearing it in the same 16 months with no interest charged — leaving a total cost of just the £140 fee, a saving of roughly £720 compared with staying put.
The saving shrinks quickly, though, if the 0% period is shorter than the time you actually need. On the same £4,000 balance with only a £150 monthly payment, clearing the debt takes around 27 months — comfortably longer than an 18-month 0% offer. In that case a meaningful chunk of the balance still reverts to the standard rate once the introductory period ends, which is exactly the phase-two calculation this calculator runs automatically, so the result reflects a more realistic saving than simply assuming the whole balance stays interest-free.
Frequently Asked Questions
Is a balance transfer the same as taking out a new loan?
No — a balance transfer moves existing credit card debt onto a different credit card, rather than replacing it with a fixed-term loan. The repayment schedule remains flexible (a minimum payment applies, but you can pay more), unlike a loan with fixed monthly instalments.
Do I need a good credit score to get approved?
Generally yes — the best 0% balance transfer offers, with the longest introductory periods and lowest fees, are typically reserved for applicants with a strong credit history. Your existing card provider or a comparison site can usually give an indication of eligibility before you apply.
What if I cannot clear the balance before the 0% period ends?
Any remaining balance simply starts accruing interest at the new card’s standard rate from that point onward, which this calculator accounts for in its comparison. Some people transfer again to a new 0% card before the period ends, though repeated transfers are not guaranteed to be available and each one typically carries its own fee.
Does a balance transfer affect my credit score?
Applying for a new card involves a credit check, which can cause a small, temporary dip in your score. Opening a new account and using a meaningful portion of its limit can also affect your credit utilisation ratio, which is a separate factor lenders look at.
Can I transfer a balance to a card from the same provider?
Most providers do not allow balance transfers between two cards issued by the same banking group — the offer is generally designed to win customers from competitors, so eligibility usually depends on which bank currently holds your existing balance.
Is it better to make more than the minimum payment?
Yes, in almost every case. The minimum payment on a 0% card is typically a small percentage of the balance, and paying only that amount can mean a large sum still remains once interest starts accruing again. This calculator assumes you set your own monthly payment, so entering a realistic, higher figure gives a more useful picture than the card’s minimum requirement.
Important Information
This calculator provides an estimate based on the figures you enter and does not constitute financial advice. It does not check card eligibility, and actual offers, fees and introductory periods vary by provider and by individual application. For advice specific to your circumstances, consult a qualified financial adviser or a free debt advice service such as MoneyHelper. See our Disclaimer for further information.