1. What is a Balance Transfer Calculator?

The Wallet Hub Balance Transfer Calculator helps you understand the financial impact of transferring credit card balances. It calculates your new balance after accounting for transfer fees and any payments made.

2. How Does the Calculator Work?

The calculator uses the balance transfer formula:

Where:

• Old Balance — Your current credit card balance before transfer
• Fees — Any balance transfer fees (typically 3-5% of transferred amount)
• Payments — Any payments you make toward the balance

Explanation: This calculation shows your new financial obligation after transferring a balance, including any associated costs.

3. Importance of Balance Transfer Calculation

Details: Understanding the true cost of a balance transfer helps you make informed financial decisions and avoid unexpected expenses when moving debt between accounts.

4. Using the Calculator

Tips: Enter your current balance in dollars, any transfer fees in dollars, and any payments you plan to make. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are typical balance transfer fees?
A: Most credit cards charge 3-5% of the transferred amount as a fee, often with a minimum fee (typically $5-$10).

Q2: Are there cards with no balance transfer fees?
A: Some cards offer promotional periods with no balance transfer fees, but these are less common and usually time-limited.

Q3: When should I consider a balance transfer?
A: Balance transfers can be beneficial when moving debt to a card with a lower interest rate, especially if the savings outweigh the transfer fees.

Q4: How do payments affect my new balance?
A: Any payments you make reduce your new balance, helping you pay down debt faster, especially if you transfer to a lower interest rate card.

Q5: Should I pay off the balance before the promotional period ends?
A: Ideally, yes. Many cards offer low or 0% APR for a limited time, after which higher rates apply, potentially negating the benefits of the transfer.