Credit Card Balance Transfer Calculator
Credit Card Balance Transfer Calculator
Move a card balance to a lower promotional rate, or keep paying where it is? Month by month: how long each takes to clear at your payment, what each costs, and the net saving after the transfer fee.
Balance transfer or stay
$1,00,000 at 45% a year; offer 20.4% for 6 months with a 2% fee, 45% after; $8,000 a month; 18% GST
Clearing a balance on each card
Balance after k months = B(1 + r)k − M[(1 + r)k − 1] ÷ r
Saving = cost if you stay − cost if you transfer
- B, M
- the balance and the fixed monthly payment
- r
- the monthly rate with GST: annual rate ÷ 1200 × (1 + GST)
- transfer
- starts at B × (1 + fee × (1 + GST)); the promotional rate for the promotional months, then the rate after it on whatever is left
- cost
- everything paid minus the original balance: interest, GST and, on the transfer, the fee
Worked example
$1,00,000 at 45% a year; offer 20.4% for 6 months with a 2% fee, 45% after; $8,000 a month; 18% GST
Staying: 45% ÷ 12 × 1.18 = 4.4250% a month; cleared in 19 months at a cost of $48,863
Transfer: fee 1,00,000 × 2% × 1.18 = $2,360, so $1,02,360 moves; 20.4% ÷ 12 × 1.18 = 2.0060% a month
After 6 months $64,842 is left, now at 45%; cleared in month 17, total cost $30,103
Net saving = 48,863 − 30,103 = $18,760
The example at different monthly payments
| Payment a month | Months: stay / transfer | Cost if you stay | Cost if you transfer | Saving |
|---|---|---|---|---|
| $5,000 | 50 / 38 | $1,49,760 | $86,179 | $63,580 |
| $8,000 | 19 / 17 | $48,863 | $30,103 | $18,760 |
| $12,000 | 11 / 10 | $27,561 | $15,814 | $11,747 |
| $20,000 | 6 / 6 | $15,582 | $9,133 | $6,448 |
When a balance transfer saves money
A balance transfer moves what you owe on one card to another at a lower promotional rate for a set period, for a one-time fee. Indian issuers offer them at rates from 0% for a couple of months to a reduced monthly rate for six months; RBI’s credit card directions require the issuer to quote an annual percentage rate for balance transfers separately from purchases. After the promotion, whatever is left is charged at the rate the offer names, usually the card’s standard rate.
The saving comes from the months at the lower rate, and the fee comes off it. So the question is how much of the balance the promotion covers. In the example, $8,000 a month does not clear the balance in six months: $64,842 is still owed when the promotion ends and goes back to 45%. The transfer still saves $18,760, because the first six months are so much cheaper. The chart shows both balances, and the table what a larger payment does.
Watch for three things. New purchases on the card holding the transfer usually carry the standard rate, and while any balance is outstanding they lose the interest-free period too, so spending on it can wipe out the saving. Missing a payment can end the promotional rate early. And a transfer does not help if the old card is then used again: the page assumes no new spending on either card.
Paying down the balance is what ends the cost. See how long any payment takes with the credit card payoff calculator, how interest is charged day by day with the credit card interest calculator, and compare converting the balance to EMIs with the credit card EMI conversion calculator, or a personal loan EMI calculator quote. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
Is a credit card balance transfer worth it?
When the interest saved during the promotion is more than the fee. In the example, $1,00,000 moved from 45% to 20.4% for 6 months with a 2% fee saves $18,760 at $8,000 a month.
What happens when the promotional period ends?
Anything left is charged at the rate after the promotion, usually the card’s standard rate. In the example $64,842 is left after 6 months.
Is GST charged on a balance transfer?
In India, yes: 18% on the processing fee and on the interest, as on other card charges.
Can I use the new card for purchases after a transfer?
You can, but new purchases usually carry the standard rate and lose the interest-free period while the transferred balance is outstanding. Paying the transfer off first is cheaper.
Related calculators
References
- Reserve Bank of India. Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022. RBI/2022-23/92, DoR.AUT.REC.No.27/24.01.041/2022-23, 21 April 2022 (as amended). Para 9(b): issuers must quote APRs for retail purchases, balance transfer and cash advances; no negative amortisation; unpaid charges, levies and taxes not capitalised; the MITC must explain that the interest-free credit period is suspended if any balance of the previous month’s bill is outstanding.
- SBI Card. Most Important Terms and Conditions — Personal Credit Cards (consulted 22 September 2026): finance charges 3.75% a month (45% a year) on unsecured cards; interest-free period of 20 to 50 days on retail purchases only when the previous balance is paid in full; otherwise interest is charged from the date of transaction until paid (its example: a 6,000 purchase for 38 days at 3.75% a month = 281.10); balance transfer at 0% for 60 days or 1.7% a month for 180 days with a one-time processing fee, while new purchases carry the standard rate; finance charges subject to applicable taxes.
- Government of India, Ministry of Finance. Notification No. 12/2017-Central Tax (Rate), 28 June 2017, entry 27(a): interest on loans is exempt “other than interest involved in credit card services”, so card interest bears GST, charged by issuers at 18% (Central Tax 9% + State Tax 9%, or Integrated Tax 18%), on interest and fees. Rate unchanged by the September 2025 GST rationalisation.
- Brealey RA, Myers SC, Allen F. Principles of Corporate Finance. McGraw-Hill. The present value of an annuity, from which the level-payment loan formula, its balance after any number of payments and its inverse for the number of payments follow.