Balance Transfer Savings Calculator

Find out how much a 0% balance transfer could save you. Enter your current balance, APR and the new deal details to see your net saving after fees, and whether your monthly payment will clear the balance before the 0% period ends.

Last updated: April 2026

Your balance transfer details
New 0% balance transfer deal
Typical UK fee: 1–3.99%. Some cards offer 0% fee deals.
Set this to clear the balance within the 0% window.
Your savings
Interest saved
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Interest on current card (same period) -
Transfer fee -
Net saving
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Balance cleared in 0% window? -
Remaining balance at end -

How balance transfers save money

A balance transfer moves your existing credit card debt to a new card offering 0% interest for a promotional period - typically 12 to 30 months. During this window, every penny of your payment reduces the principal rather than being partly consumed by interest. On a £3,000 balance at 24.9% APR, the first month's interest alone is around £62. Over 24 months of minimum payments, you would pay over £1,000 in interest while barely reducing the balance. A 0% transfer eliminates that cost entirely for the promotional period.

The transfer fee calculation

Most balance transfer cards charge a one-off fee - typically 1–3.99% of the amount transferred - applied immediately to your new balance. A 3% fee on £3,000 adds £90 to your balance. This needs to be weighed against the interest you avoid on your current card. In almost all cases where the 0% period is 12 months or more, the transfer fee is comfortably outweighed by the interest saving.

What happens when the 0% period ends

If you have not cleared the balance by the end of the promotional period, the remaining balance reverts to the card's standard purchase or balance transfer rate - often 20–30% APR. This is the key risk of balance transfers. The calculator shows whether your chosen monthly payment will clear the balance within the window. If it will not, either increase your monthly payment or plan to do a second transfer before the promotional rate expires.

Frequently asked questions

Applying for a new credit card results in a hard search on your credit file, which may temporarily reduce your score slightly. The new available credit limit, if unused, can improve your credit utilisation ratio over time, which is a positive. As long as you make at least the minimum payment on the new card each month and do not miss a payment, a balance transfer is unlikely to have a lasting negative impact on your credit score.
Most balance transfer cards do not offer 0% on new purchases - only on the transferred balance. If you make new purchases, they will typically accrue interest at the standard rate. Payments are usually allocated to the cheapest debt first (the 0% balance), meaning new purchases can accrue interest until the entire transferred balance is cleared. To avoid this, either do not use the card for new purchases, or use a separate card for spending.
Divide the total amount transferred (including the transfer fee) by the number of months in the 0% period. This gives you the minimum monthly payment needed to clear the balance before interest kicks in. For example, a £3,090 balance (£3,000 + 3% fee) over 24 months requires £128.75 per month. Setting up a direct debit for slightly more than this gives a buffer. Never set the direct debit to the minimum payment - this is designed to keep you in debt beyond the 0% window.