Worked example: £3,000 moved to a 0% card for 24 months
Moving £3,000 from a card charging 22.9% APR to a 0% card for 24 months, with a 3% transfer fee, adds a fee of £90.00, so £3,090.00 moves across. Paying £100 a month, £690.00 is still owed when the offer ends, and that remainder is then charged at the card's standard rate, which this example sets at 24.9% APR.
With the same £100 a month, the old card would take 43 months to clear and cost £1,271.04 in interest. The new card clears in 32 months and costs £55.88 in interest after the offer ends. Once the fee is counted, transferring saves £1,125.16. To clear the whole balance inside the 24 months you would need to pay £128.75 a month.
How the saving is worked out
The calculator pays the old card down at its APR with the payment you enter, then does the same on the new card with the fee added to the balance, the promotional rate for the promotional months and the standard rate after that. The saving is the total you pay on the old card minus the total you pay on the new one, fee included.
Barclaycard's own balance transfer calculator shows the same fee and the same balance at the end of a 24-month offer for these inputs: a fee of £90.00 and £690.00 left. It reports total savings of £847.43, a figure it does not explain and that we could not reproduce exactly, so expect small differences between tools.
Which interest rate convention is used
UK lenders quote APR as an effective annual rate under FCA CONC App 1.2, so by default this calculator turns a yearly APR into a monthly rate as (1 + APR)^(1/12) − 1 rather than dividing by 12. Calculators that divide by 12 show a little more interest, so their savings figures are higher for the same inputs. The APR convention field switches to APR divided by 12: on the default £3,000 example the saving rises from £1,125.16 to £1,342.86.
When a transfer does not pay
A transfer only saves money if the interest you avoid is larger than the fee. If your current card charges 5% APR and you pay £150 a month on £3,000, a 5% fee of £150 is more than the £135.69 of interest you would pay on the old card, so the transfer costs you £14.31 more. The result then shows the extra cost instead of a saving.
Anything left on the transferred balance when the offer ends moves to the standard rate, and Barclaycard warns that new purchases can attract interest until a transferred balance is cleared. Paying more than the minimum, and not adding new spending to the card, is what makes a transfer work.
What this calculator leaves out
It assumes one transfer, equal monthly payments and no new spending. It does not model minimum payments, a promotional offer that only applies to transfers made soon after opening the card (Experian says this is usually within 60 days, so check the terms), or whether you would be accepted for the card. Applying usually leaves a search on your credit file; an eligibility check can show your chances first.
To compare a transfer card with taking a loan, use the balance transfer vs personal loan calculator.
To see how long a card takes to clear without a transfer, use the credit card repayment calculator.
Use the right country page
This page uses UK terms, pounds and, by default, the UK effective APR convention. For a US card, with a minimum transfer fee and the nominal APR convention, choose United States above the form to open the US balance transfer loan calculator. Inputs reset and amounts are not converted.
Inputs for the UK balance transfer loan calculator
APR convention
Applies to the current card, the promotional rate and the rate after it. Effective APR (FCA) is the default and follows the FCA APR rule. APR divided by 12 is how many UK sites work and gives a slightly higher monthly rate.
Amount to transfer
The card balance you move, before the transfer fee.
Current card APR
The yearly rate on the card you are moving the balance from, from your statement.
Monthly payment
What you pay each month. The calculator uses the same payment on the old card and the new one.
Promotional rate and period
The rate on the transferred balance during the offer, and how many months it lasts. Type 0 for a 0% offer.
Balance transfer fee
A percentage of the amount moved, added to the new balance.
APR after the promotion
The rate on whatever is left once the offer ends. Take it from the card's terms.
CALCULATOR QUESTIONS
UK balance transfer loan calculator questions
How much does a balance transfer save?
It depends on the balance, your current APR and how fast you pay. Moving £3,000 from a card at 22.9% APR to a 0% card for 24 months with a 3% fee, paying £100 a month, saves £1,125.16 after the fee.
Is the balance transfer fee added to the balance?
Here it is: a 3% fee on £3,000 is £90.00, so you repay the fee along with the balance, interest-free while the offer lasts.
What happens when the 0% period ends?
Anything still owed moves to the card's standard rate. In the example, £690.00 is left after 24 months at £100 a month and is charged at 24.9% APR until cleared.
Is a balance transfer better than a personal loan?
It can be if you clear the debt inside the 0% period. A loan gives a fixed payment and term but charges interest from the start. The balance transfer vs personal loan calculator compares the two.
Why does my card provider's calculator show a different saving?
Tools differ in how they count the fee, whether the payment comes before or after interest and how they turn an APR into a monthly rate. By default this one uses the UK effective APR convention (the APR convention field can divide by 12 instead) and adds the fee to the balance.