Balance Transfer Rate Calculator
A balance transfer allows you to move the outstanding balance from one credit card to another, often to take advantage of a lower introductory Annual Percentage Rate (APR). This can be a smart financial move if you're looking to save money on interest charges, especially on high-interest debt. However, it's crucial to understand the terms and conditions, including the balance transfer fee and the duration of the introductory APR.
When considering a balance transfer, pay close attention to:
- Balance Transfer Fee: This is typically a percentage of the amount you transfer, charged upfront.
- Introductory APR: The special low interest rate offered for a limited time.
- Regular APR: The interest rate that will apply after the introductory period ends.
- Credit Limit: The maximum amount you can transfer.
Our calculator helps you estimate the potential savings by comparing the cost of transferring your balance versus continuing to pay interest on your current card. By inputting your current balance, the balance transfer fee percentage, and the introductory APR, you can get a clearer picture of how much you might save.
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#result {
margin-top: 20px;
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text-align: center;
font-size: 1.1em;
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}
function calculateSavings() {
var currentBalance = parseFloat(document.getElementById("currentBalance").value);
var transferFeePercentage = parseFloat(document.getElementById("transferFeePercentage").value);
var introductoryAPR = parseFloat(document.getElementById("introductoryAPR").value);
var transferDurationMonths = parseInt(document.getElementById("transferDurationMonths").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(currentBalance) || isNaN(transferFeePercentage) || isNaN(introductoryAPR) || isNaN(transferDurationMonths) ||
currentBalance < 0 || transferFeePercentage < 0 || introductoryAPR < 0 || transferDurationMonths 0) {
var monthlyAPR = (introductoryAPR / 100) / 12;
// Simple interest calculation for illustration within the intro period, assuming no payments are made
// A more complex calculation would involve amortization, but for savings comparison, this is a good proxy.
// We assume the balance remains constant for the duration of the intro period to illustrate the interest saved.
interestPaidDuringIntro = currentBalance * monthlyAPR * transferDurationMonths;
}
// For comparison, let's estimate what the interest might be on the original card.
// This is a simplification, as original APR and payment habits vary.
// We'll assume a hypothetical higher APR for comparison.
// In a real scenario, you'd input your current card's APR.
var hypotheticalOriginalAPR = 18; // A common example of a higher credit card APR
var monthlyOriginalAPR = (hypotheticalOriginalAPR / 100) / 12;
var estimatedInterestOnOriginal = currentBalance * monthlyOriginalAPR * transferDurationMonths;
var totalCostOfTransfer = transferFeeAmount;
var netSavings = estimatedInterestOnOriginal – totalCostOfTransfer;
var savingsMessage = "";
if (netSavings > 0) {
savingsMessage = "Potential Savings:
$" + netSavings.toFixed(2) + "";
} else if (netSavings < 0) {
savingsMessage = "Potential Loss:
$" + Math.abs(netSavings).toFixed(2) + ". It may not be beneficial to transfer.";
} else {
savingsMessage = "No significant savings or loss. Cost of transfer equals estimated interest saved.";
}
resultDiv.innerHTML = "
Estimated Outcome:
" +
"Balance Transfer Fee:
$" + transferFeeAmount.toFixed(2) + "" +
"Estimated Interest Paid on New Card (Intro Period):
$" + interestPaidDuringIntro.toFixed(2) + "" +
"Estimated Interest Saved Compared to Original Card (Hypothetical " + hypotheticalOriginalAPR + "% APR):
$" + estimatedInterestOnOriginal.toFixed(2) + "" +
"" + savingsMessage + "";
}