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Balance transfer calculator: How much money can you save with a credit card balance transfer?

Balance transfer calculators can help you calculate how much you could save with different balance transfer offers on the market. Find and compare balance transfer credit cards that suit your needs.

Mark Bristow

Personal Finance Editor

Content updated

19 Jun, 2023

Product data updated

30 Apr, 2025

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Calculate what your credit card balance is costing you in repayments, and see how much you could save in interest with a balance transfer card.

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Calculate how much you can save with a balance transfer calculator

The RateCity balance transfer calculator can help you see how much you might save by switching from your current credit card to a balance transfer card. The calculator shows you multiple balance transfer options, and the potential savings for each card.

How to use the balance transfer calculator

Our balance transfer calculator is a handy tool to help you calculate how much you might save by transferring your debt to a credit card with a low or 0% interest rate for balance transfers.

Here’s how it works:

Enter your current credit card balance (debt)
Enter your monthly credit card repayment
Enter your current credit card interest rate
Click or tap Show Results

The rate table will update to show you a list of credit cards and the potential savings you could make if you were to switch.
The table also includes information like the balance transfer rate, revert rate, and details of any 0% balance transfer period, plus the cost of the annual fee and interest charges in the time it would take to pay off your balance.

Why use a balance transfer calculator?

Determining how much you’ll save on a balance transfer can be tricky, especially when there are so many choices available on the market. The RateCity credit card balance transfer calculator eliminates the guesswork by showing you:

Potential savings you will make by switching to another credit card;
How much you could save by choosing to make higher repayments; andHow much interest you’ll pay after the promotional interest period is over.

Using the balance transfer calculator could thus make it easier for you to choose a credit card with a favourable balance transfer rate and a long enough period to help pay off your debt faster.

However, keep in mind that the results provided by this calculator are based on the assumption that you’ll make consistent payments on your card over the balance transfer period. If you can’t keep up with your card payments for any reason or use your card to make new purchases during the promotional period, your actual savings may vary.

How do credit card balance transfers work?

Balance transfer credit cards could help individuals manage their existing debt more effectively. With a balance transfer, you can move your outstanding balances to a new card with a 0% or low interest rate for a specific period. If you budget carefully and select a card with a long enough low-rate period, a balance transfer could help you save a lot of money in interest charges and possibly get out of a sticky debt spiral.

However, if you’re unable to pay off your balance in time or continue using the card to make additional purchases, you may find yourself deeper into debt by the end of the balance transfer period.

Many balance transfer cards don’t offer any interest-free period for new purchases during the balance transfer period, meaning you start accruing interest as soon as you swipe the card for a new purchase. If you mistakenly select a card with a higher purchase rate than what you were paying on your previous card, you’ll find yourself paying even more interest on new purchases as well as any outstanding debt at the end of the balance transfer period.

What is balance transfer fee?

Card issuers may sometimes charge a balance transfer fee to cover the administrative costs associated with processing the transfer. It is generally calculated as a percentage of the transferred amount, typically ranging from 1% to 3% of the balance.

For example, if you are transferring a balance of $5,000 and the balance transfer fee is 1%, you would incur a fee of $50. Even though this amount seems small, remember that it is based on a hypothetical situation. The actual fee you’ll be charged depends on how much debt you plan to transfer and the terms of the credit card you choose.

A higher balance transfer fee could potentially affect the savings you expect to achieve during the promotional period. Additionally, not all card issuers charge a balance transfer fee, so it’s worth comparing your options.

How do I choose the best credit card balance transfer offer?

There are a few factors to keep in mind when choosing the best balance transfer offer for your financial situation, and the balance transfer calculator can be a great asset in your decision making.

Introductory period: The period of time during which you are not charged any interest or are subject to a lower interest rate. This period indicates just how much breathing room you have to pay back your debt. The length of the introductory period could range from as low as 6 months to 12 months, and sometimes extending to 18 months or even 24 months.
Interest rates: Not only should you take into consideration the purchase rate charged on new purchases and cash advance rate, but also the balance transfer rate charged upon using the account. Looking for a low rate option once your balance transfer period has ended may help you continue to keep debt at bay.
Fees: Includes annual fees, balance transfer fees, foreign transaction fees, late payment fees, and more. These will affect the ongoing cost of your balance transfer card, regardless of if you're still in an interest free period.
Perks and rewards: Once you've paid your balance transfer amount in full, will your new card offer you any perks and rewards? This could include a rewards program, travel insurance, a high number of interest free days, cash back and more.

What happens if I don't pay off my transferred balance in time?

If you come to the end of your balance transfer period, and you still have money owing, you’ll begin to accrue interest on this balance at your card’s purchase rate.

This is why it's so important that cardholders carefully review their repayment terms before applying for a balance transfer card. This includes knowing:

How long the balance transfer period is.
The purchase rate that will be charged at the end of the balance transfer period.
Any ongoing fees or late fees that may be charged.
Whether any new purchases using the card during the balance transfer period will immediately start accruing interest.

The last point can be a serious blind spot for a lot of struggling Australians trying to get on top of their debt. This is why some experts recommend that once you transfer your balance to your new card, you avoid the temptation to use it for making any new purchases until the debt has been repaid.

You could choose to cancel, cut up, hide, or block your old card so you're not tempted to use it and accumulate further debt. You may also want to ensure that nothing is still owing on your old card once you've transferred to your new card.

Remember, having a maxed out credit limit and only making minimum monthly payments on your debt can seriously affect your credit score. By choosing to get on top of it with a balance transfer card, you're potentially not only improving your financial situation, but also your credit rating. However, you need to plan ahead and use the balance transfer period to pay off your debt. Carrying a balance on the card after the expiry of the balance transfer period or using a balance transfer card to make new purchases may lead you deeper into debt.

What are the pros and cons of balance transfers?

Overall, there are a variety of reasons to consider a balance transfer. However, it’s important to be aware of sneaky fees and revert rates that can hit you after the promotional period.

The benefits of balance transfers

Pay off your debt quicker: Switching to a credit card with a lower interest rate or 0% balance transfer rate can help you pay off your debt faster.
Easier debt management: If you have multiple debts across different cards, it can be hard to keep track of repayments. Consolidating debt can make debt simpler to manage.
Lower interest rates: Transferring your debt to a card with lower interest rates could save you hundreds or even thousands of dollars in interest.

The disadvantages of balance transfers

Additional fees and charges: Credit cards can come with many different fees and charges, including balance transfer fees. Read the Product Disclosure Statement before you apply to better understand these costs.
Higher rates after promotional periods: Once your interest-free period ends, you may incur a high interest rate on any outstanding balance. You may want to work off any debt before this period ends.
Risk of more debt: Purchases made on balance transfer cards will still accrue interest when you make purchases, so you could be at risk of accumulating more debt.

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Mark Bristow

Personal Finance Editor

Mark Bristow is RateCity's Home & Personal Finances Editor, and an experienced analyst, researcher, and producer. While primarily focused on Australian mortgage and home loan expertise, he has experience across energy, home and travel insurances. Mark has been a journalist and writer in the financial space for over ten years, previously researching and writing commercial real estate at CoreLogic. In the years since, Mark has worked for the Winning Group, Expedia, and has seen articles published at Lifehacker and Business Insider. Mark has also completed RG 146 (Tier 1), making him compliant to provide general advice for general insurance products like car, home, travel and health insurance, as well as giving him knowledge of investment options such as shares, derivatives, futures, managed investments, currencies and commodities.

Do you currently have credit card debt across one or more cards that you are struggling to pay off? If so, you might benefit from a balance transfer credit card.

A balance transfer moves your existing debt to a new credit card with a low or no interest rate period, to reduce your monthly repayments and the total interest you have to pay. The main reason people use a balance transfer credit card is to take advantage of these low or 0% balance transfer periods, which can last anywhere from 6 to 26 months. This could potentially save you hundreds or even thousands of dollars in interest charges compared to making the minimum repayment on your current credit card each month.

Balance transfer calculators can help you work out how much you could save with different balance transfer offers on the market. Find and compare balance transfer credit cards that suit your needs.

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