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.

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, or transfer again to another 0% card before the rate reverts.

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.

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.