Credit Card Balance Transfer Calculator

Calculate savings from transferring your credit card debt to a card with lower interest rate. See how much you can save vs paying minimum dues.

## What is the Credit Card Balance Transfer Calculator? The Credit Card Balance Transfer Calculator shows how much you can save by moving your existing credit card debt to a card offering a lower interest rate. Most banks offer balance transfer promotions at 0.99 to 1.99% per month (12 to 24% p.a.) for tenures of 3 to 12 months, compared to your current card standard rate of 36 to 42% p.a. ## Formula Used Monthly Interest = Outstanding x (Monthly Rate) Savings = (Current Rate Interest - New Rate Interest) x Months - Transfer Fee Balance transfer fees typically: 1 to 2% of transferred amount (min Rs 99 to Rs 500) ## Worked Example Outstanding: Rs 1,00,000, Current rate: 36% p.a., New rate: 14% p.a., Tenure: 12 months, Transfer fee: Rs 1,000 Interest at current rate: Rs 36,000 Interest at new rate: Rs 14,000 Net savings: Rs 36,000 - Rs 14,000 - Rs 1,000 = Rs 21,000 New EMI (to clear in 12 months): Rs 8,333/month ## Frequently Asked Questions 1. What is the typical balance transfer interest rate in India? Banks offer balance transfers at 0% to 1.5% per month (0 to 18% p.a.) for promotional periods of 3 to 12 months. HDFC, ICICI, and Bajaj Finserv offer popular balance transfer programs. 2. Is there a fee for credit card balance transfer? Yes, most banks charge 1 to 2% of the transferred amount as a processing fee (minimum Rs 99 to Rs 500). Always calculate if the fee is less than the interest savings. 3. Will balance transfer affect my credit score? A balance transfer itself does not reduce your credit score, but applying for a new card (to transfer to) creates a hard inquiry. 4. Can I make new purchases on a balance transfer card? You can, but it is strongly advised not to. New purchases attract the card standard interest rate (not the promo rate) and are not part of the balance transfer. 5. What happens if I do not pay off the balance during the promo period? After the promotional period ends, the remaining balance starts attracting the card standard interest rate (24 to 42% p.a.). To maximise savings, choose a tenure that allows you to fully pay off the transferred balance during the promo period.

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