Balance Transfer Calculator

You move the balance from your current credit card to a new card that charges 0% interest for a set promotional period. In return you usually pay a one-off transfer fee — typically 1% to 4% of the balance — which is added to the new card. While the 0% lasts, every pound you pay reduces the debt rather than going on interest.

Multiply the amount you are transferring by the card’s fee percentage. For example, moving £5,000 to a card with a 2.9% fee costs £5,000 × 2.9% = £145, which is added to your new balance, so you would owe £5,145. The calculator above works this out for you and shows the fee alongside the interest you would save.

Most balance transfer cards charge a one-off fee of around 1% to 4% of the amount transferred, with many longer 0% deals sitting near 2.9%–3.5%. That is a common range rather than a fixed rule — some cards run fee-free 0% offers, usually with a shorter 0% period — so it is worth weighing the fee against the length of the interest-free window.

It depends on your current APR and how much of the balance you clear during the 0% period. The fee is worth it when the interest you avoid is more than the fee. On a high-APR card the interest you’d otherwise pay often dwarfs a 2–3% fee, so transferring saves money — provided you keep paying the same amount and add no new spending.

Any balance left when the promotional period finishes starts being charged at the card’s standard APR, which can be similar to or higher than your old card. To avoid this, aim to clear the balance within the 0% window. You may want to review your options before the rate reverts, but future 0% deals aren’t guaranteed and may involve a fee or a credit check.

Applying involves a credit check, which can cause a small temporary dip, and opening a new account lowers the average age of your accounts. But reducing your overall interest and paying down debt steadily is good for your credit over time. Many lenders offer an eligibility checker that uses a soft search before you apply.

They solve the same problem differently. A 0% balance transfer is usually cheaper if you can clear the debt within the promotional period — you pay only the transfer fee. A personal loan has a fixed rate and a fixed end date, which suits larger balances or longer payoff times, and removes the temptation of a revolving credit limit. Compare the transfer fee against the loan’s total interest with the loan calculator before deciding.

It’s best not to. New purchases often don’t get the 0% rate and can be charged interest immediately, and they make the balance harder to clear before the deal ends. Use the card only for the transferred balance and put new spending elsewhere. If you’re struggling with debt, free help is available from MoneyHelper, StepChange, National Debtline and Citizens Advice.