Balance Transfer Calculator

Finance

See whether moving a credit card balance to a lower-rate card actually saves you money. Enter your current balance, your current APR, the balance-transfer APR, how long you'll take to repay, and the transfer fee, and the calculator estimates your net savings after the fee.

Formula

Savings = (Current Interest) − (Transfer Interest + Transfer Fee)
  • Current interest ≈ balance × current APR × (months ÷ 12); transfer interest uses the new APR the same way.
  • The transfer fee is a one-off charge, usually 1–5% of the balance moved, added to the cost of the new card.
  • A positive result means the transfer saves you money over the repayment period; a negative result means the fee outweighs the interest savings.
  • This is a simplified estimate using flat interest — real cards compound and may offer a 0% promotional window, so check your card's terms.
  • To get the most from a balance transfer, clear the balance before any promotional 0% period ends and avoid new spending on the card.

PKR 500,000 balance, 28% → 12% APR, 12 months, 3% fee

Inputs
  • Current Balance (PKR): 500000
  • Current APR (%): 28
  • Balance Transfer APR (%): 12
  • Repayment Period (months): 12
  • Transfer Fee (%): 3

Current interest = 500,000 × 28% = 140,000. Transfer interest = 500,000 × 12% = 60,000, plus a 15,000 fee = 75,000. Estimated savings = 140,000 − 75,000 = 65,000.

Frequently asked questions

What is a balance transfer?
It's moving debt from one credit card to another — usually one with a lower or 0% promotional interest rate — so you pay less interest while you clear the balance.
Is a balance transfer worth it?
It's worth it when the interest you save at the lower rate is more than the transfer fee. This calculator compares the two so you can see the net effect.
What is a typical transfer fee?
Most cards charge a one-off fee of around 1–5% of the amount you transfer. Always factor this in — a low rate can still cost more once the fee is added.
Does a balance transfer hurt my credit?
Applying adds a hard inquiry and a new account, which can dip your score briefly, but reducing your interest costs and paying the balance down usually helps over time.
What happens when the promotional rate ends?
Any remaining balance reverts to the card's standard APR, which is often high. Aim to clear the balance before the promotional period ends.