Balance Transfer Calculator
Compare the total cost of moving a credit-card balance to a low-rate promo card versus keeping it on the old card, to see if a balance transfer is worth it.
Input Data
Results
At a glance:A balance transfer shifts an outstanding credit-card balance to another card (usually a different bank) offering a low or 0% promotional rate to cut interest. A 0% or ultra-low new card looks attractive, but true value also depends on two often-overlooked costs: the one-off balance-transfer fee (a % of the transferred balance) and the normal rate after the promo ends. This tool compares on a simplified simple-interest basis: the old-card total cost versus the new-card total cost (transfer fee + promo-period interest + post-promo interest); the difference is the 'transfer savings'. Positive means the transfer pays off; negative means it costs more. The key rule: clear the balance within the promo period so the interest saved exceeds the fee, and note the 0% promo usually covers only the transferred balance, not new spending.
Formula
Old-card cost = balance + old annual rate% × balance × repayment years.
Transfer fee = balance × transfer fee rate%.
New-card cost = balance + transfer fee + promo interest + post-promo interest.
Promo interest = promo annual rate% × balance × promo years; post-promo interest = final annual rate% × balance × (repayment years − promo years).
Transfer savings = old-card cost − new-card cost (positive = worthwhile).
$$C_{\text{old}} = B + \dfrac{r_{\text{old}}}{100} \times B \times y$$$$F = B \times \dfrac{r_{\text{fee}}}{100}$$$$C_{\text{new}} = B + F + \dfrac{r_{\text{promo}}}{100} B\,y_p + \dfrac{r_{\text{final}}}{100} B\,(y - y_p)$$$$\text{Savings} = C_{\text{old}} - C_{\text{new}}$$How to Use
- Enter the balance to transfer and the old card's annual rate.
- Enter the new card's transfer fee rate, promo rate and post-promo rate.
- Enter the repayment years and promo years to see if the transfer saves money.
FAQ
When is a balance transfer actually worth it?
It is worth it when the 'transfer savings' figure is positive — i.e. the new card's total cost is below the old card's. The key is whether you can clear the balance within the promo period and ensure the interest saved exceeds the transfer fee.
Does the 0% promo apply to all spending?
Usually the 0% applies only to the transferred balance, not to new spending made after the transfer. New purchases may be charged at the standard rate, so watch this carefully.
Why should I pay attention to the transfer fee?
The transfer fee is a one-off charge (commonly a percentage of the balance). If it is too high, it can offset the interest you save, making the transfer not worthwhile.
Will a balance transfer affect my credit score?
Applying for a new card usually triggers a credit enquiry, which may lower your score slightly in the short term; opening a new card also shortens your average account age. But if it substantially cuts your interest, helps you clear the debt faster and you pay on time, it can improve your debt-to-balance ratio and repayment record over the long run. Just avoid opening many cards in a short period.
Are there balance-transfer plans in Hong Kong?
Yes. Many Hong Kong banks offer 'balance transfer plans' or 'instalment interest-free / low-interest repayment', with varying annual rates, handling fees (transfer fees) and promo periods; some are quoted as a 'monthly handling fee' or an 'actual annual rate (APR)'. Before applying, obtain the terms from the issuer, compare the actual annual rate, and note any charges for late payment or early settlement. This calculator gives only a rough estimate.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.