Balance Transfer Break-Even Calculator Methodology

The calculator estimates current payoff cost, balance transfer payoff cost, transfer fee, break-even month, balance after the promotional period, required payment to clear the promo, interest savings, months saved, and planning warnings.

The current path starts with the entered current balance and APR. Each month, the calculator adds interest using the monthly APR, applies the selected payment amount, and tracks balance, interest paid, and total paid until the balance is paid off or the 600-month model limit is reached.

The transfer path starts with the transfer amount plus the transfer fee, annual fee, and other upfront fees. Each month, the calculator applies the promotional APR during the promo period and the post-promo APR afterward. It applies the entered promo payment, optional post-promo payment, and any one-time extra payment.

The transfer fee is calculated as the transfer amount multiplied by the entered fee percentage. The fee is added to the starting transfer balance and also shown separately so users can see how much cost is created by the transfer itself.

Months 1 through the entered promotional period use the promotional APR. If the promo APR is 0%, the calculator does not add interest during those months, though payments still reduce the balance.

After the promotional period ends, any remaining transferred balance uses the entered APR after promo. The calculator shows a warning when a balance remains after the promo period.

The calculator compares cumulative cost month by month. Current cost is payments made plus remaining current balance. Transfer cost is transfer payments made plus remaining transfer balance. The break-even month is the first month where the transfer path costs less than the current path.

If the promotional APR is 0%, the required payment is the starting transfer balance divided by the promo period. If the promotional APR is above 0%, the calculator uses a standard amortized payment formula over the promotional months.

This calculator does not include approval odds, credit score effects, exact card issuer terms, late fees, penalty APRs, deferred interest rules, minimum payment formulas by issuer, or tax, legal, debt, or financial advice.

This calculator uses user-entered assumptions and a simplified monthly payoff simulation. Real card terms can vary.

These calculators are for educational purposes only and are not financial, tax, legal, insurance, investment, real estate, employment, medical, childcare, vehicle-buying, or professional advice.

This calculator is for educational purposes only and is not financial, credit, legal, debt, tax, or professional advice. It does not determine whether you qualify for a balance transfer or any credit product.