Balance Transfer Savings Calculator

Use our Free Balance Transfer Savings Calculator to work out how much interest you could save by transferring your credit card debt to one of the balance transfer credit card deals featured in our comparison table below.


How to use the balance transfer savings calculator:


  1. Enter the balance you are looking to transfer by using the slider below.
  2. Enter your current purchase interest rate - you'll find this on your credit card statement
  3. Check out the ‘Your Savings’ column, this is an estimate of how much you'd save on interest by switching to each card. Clicking on the ‘?’  icon explains how the savings are calculated.
  4. Click on the "Your Savings" column header to rank the savings from high to low

It is important to consider all the features of the balance transfer credit card when making your decision, in particular the revert rate, purchase rate, cash advnace rate and any annual credit and balance transfer fees.




Stop paying Interest with a the Best Balance Transfer Credit Card


Using the Balance Transfer Saving Calculator above it very quickly becomes clear that by switching your credit card debt to a balance transfer credit card you can save a significant amount of money by reducing your interest costs.


The potential savings you can make on interest are not only significant but can also commence relatively quickly, as the process of switching to a balance transfer credit card is simple and can be done on line via each of the credit card providers on line application processes.


Having decided a switch to a Balance Transfer Card is the way to go the next step will be to identify the balance transfer Credit Card that meets your requirements and suits your financial circumstances. A good starting point in this credit card comparison process is to understand the key features of the balance transfer cards which impact on the amount of interest you could potentially save.


The 2 primary features of balance transfer credit cards that have a large impact on the savings you could potentially make on interest are the balance transfer rate and the balance transfer period.


1. Balance Transfer Rate

This is the rate of interest that will be used to calculate the interest charges you will pay on the balance you transfer to the balance transfer credit card. Balance Transfer Rates are generally very low when compared to standard credit card purchase and cash advance rates and are generally in the range of 0% to 3% p.a. When compared to the current average purchase rate of Australian Credit Cards, which is around 19% p.a. the difference is significant, and it is this difference in rate which delivers the savings in interest.


2. Balance Transfer Period

This is the fixed period of time across which the balance transfer rate is charged on the debt transferred to the balance transfer credit card. To maximize the saving on interest the full amount of the balance transferred needs to be repaid within the balance transfer period, if the full amount is not repaid within the balance transfer period the outstanding amount of the debt transferred will be charged interest at the card revert interest rate. This revert interest rate will be either the cards Purchase or Cash advance rate and so significantly higher than the balance transfer rate enjoyed during the balance transfer period.


Selecting a Balance Transfer credit card to deliver the greatest savings


0% p.a. Balance Transfer for up to 6 months

This is the shortest Balance Transfer Period offered and is an option worth consideration if you are 100% confident of paying down the debt within this short period, through careful cash management and timely repayment of the debt. Being confident that 6 months is a long enough period for you to clear the transferred debt in full is critical, as failure to repay the debt in full within the 6 months will result in any outstanding debt attracting interest at the cards revert rate. Any thoughts of not being able to repay the transferred debt in full within 6 months should be countered by extending your selection to include cards with longer balance transfer periods, which still offer 0% p.a. balance transfer rates.


0% p.a. balance transfer for up to 24 months

Designed for customers who are looking to transfer larger debts and those seeking an extended time to pay off their accumulated debt, these 24 month balance transfer period cards are a popular choice. It can be tempting to consider these long term balance transfer periods as an option when you want to take your time to clear your debts, this is a sensible approach so long as the decision is not driven by a wish to trail the repayment out across a longer period, when in fact you have the means and your circumstances allow you to clear it faster

Balance Transfer Credit Cards with instant on line approval

With a decision on your application within 60 seconds of hitting the submit button on your application these fast approval balance transfer cards provide the opportunity to get your debt transferred fast, and so quickly start making savings on interest. To be accepted within this 60 second timeframe you will need a credit history clear of any bad debts and CCJ’s, so check your credit report if you are unsure of its state before making an application.  


The choice of balance transfer credit cards is vast, above we have covered just 3 of the many offer types which are available. With every balance transfer offer it’s very important that you take into account all the financial factors that come with the credit card. These should include, not only the balance transfer rate and the balance transfer period but also any balance transfer fee, annual card fee, and the interest rate to which the card reverts to after the balance transfer rate expires.


Maximize your interest savings derived from a balance transfer


The Do’s


Choose a balance transfer credit card with the combination of low balance transfer rate and balance transfer period that best suits your circumstances and ability to repay the transferred debt. A 0% p.a. balance transfer rate that applies for 6 months will turn out to be a more costly deal than a 2.99% APR for 24 months, if you are more likely to pay off your debt within 2 years than 6 months.


As a just in case measure understand what the revert interest rate of the balance transfer card is, as this is the interest rate which will be charged on any of the debt transferred which you fail to pay within the balance transfer period. If you plan on retaining the card beyond the balance transfer period you should alo access the competitive ness of the cards purchase and cash advance rates alongside the features provided by the card beyond those of a balance transfer.


Make at least the minimum monthly credit card payment on time - Never, Never, Never miss your monthly repayment. Missing this monthly repayment can trigger a breach of the cards terms and conditions which can see the balance transfer rate being cancelled, and all the debt attracting the revert rate of interest with immediate effect.


The Don’ts


Credit Card providers are increasingly making dual introductory offers of 0% p.a. Balance Transfers in combination with 0% p.a. Purchase rate offers, these cards certainly have their purpose but if your objective is to pay off your debt do not introduce the temptation of a 0% purchase option which will potentially lead to you simply incurring more debt, sure at 0% but at some stage it will need to be repaid


Rule out a balance transfer credit card that charges an annual fee. By paying an annual fee, you could be paying for more favorable terms on your balance transfer such as a longer balance transfer period and a lower revert rate when that period is up.


Assume that you can easily transfer to another balance transfer credit card when the balance transfer period is up. While new customers are always welcome, credit card providers still tend to shy away from consumers who seem like high credit risks. Jumping from one credit card offer to another repeatedly indicates that you could be one, and this may adversely affect your credit score.

How do Balance Transfers Work? and How Do I save money by switching to a Balance Transfer Card? - this infographic steps you through each part of the Balance Transfer process and explains where and how the interest savings are generated by switching to a Balance Transfer credit card. Read more


Compare Balance Transfer Credit Card Offers - Credit Card providers are constantly refining their Balance Transfer Offers to keep them competitive, here we compare and review the latest Balance Transfer Offers and calculate the savings you could make by switching to one of the current card offers. Read more


0% p.a. Balance Transfer for 6 month Credit Card Offers - These short term balance transfer credit cards focussed on clearing the transferred debt as quickly as possible to deliver savings on interest and a clean start within the 6 month balance transfer period. Read more


Balance Transfer Savings Calculator - Frequently Asked Questions

  1. You could save money on interest repayments
  2. You could reduce the amount of fees you have to pay if you are paying fees across a number of credit and store cards
  3. Having a single credit card and one repayment arrangement could be easier than managing multiple credit card repayments

There are three primary ways a Balance Transfer could help you:

  • Save on interest costs and other fees. You enjoy a reduced or 0% p.a. interest rate on the amount transferred from your credit or store cards. During this reduced interest period you will save on interest costs so long as you continue to make the minimum payment each month.
  • You get to pay off your balance faster. The money that would have gone to paying high interest costs can now be directed to paying off the transferred balance.
  • You simplify your financial life. A Balance transfer enables you to easily manage debt and organize your finances better. By consolidating several credit card balances to just one credit card provider, you no longer have to think about having to make multiple payments to multiple companies on different due dates every month. 

The period during which a promotional balance transfer rate applies depends on the credit card provider and the particular card which you are applying for. Credit Cards with the most attractive offers, 0% interest rate and no transfer fee, tend to have shorter terms, typically ranging from 6 to 9 months, though as the market for balance transfers has incresaed offers for balance transfer periods of 12-24 months are now common.

The balance transfer limit is the maximum amount that you can move to the balance transfer card. It is dependent on the credit limit approved by the card provider at the point of application.

The most that you can transfer to new balance transfer credit card would be equal to the approved credit limit, though the majority of card providers limit the transfer amount to 90 to 95 per cent of the new credit limit. The remaining part of the limit is then available to be used for new purchases.

At the end of the balance transfer period, the introductory low interest rate would no longer be applicable.

Any remaining balance from the original amount transferred would be charged a new, higher rate. This can be the regular rate which is applied on standard purchases, or the cash advance rate which is usually much higher. The new interest rate is also referred to as the ‘revert’ rate.

Some of the credit card providers charge a one-time fee at the time the balance transfer is made, this fee is usually added to the Balance Transfer amount. This fee is often may referred to as a balance transfer fee. It is typically calculated as a percentage of the amount to be transferred, usually between 1 to 3 per cent. Therefore the bigger the debt transferred, the bigger the fee. There are also balance transfer cards that waive the transfer fee in exchange for a higher introductory APR (not 0%) or shorter repayment periods.

To avoid having to pay unexpected fees, be sure to check the fine print and make the necessary calculations before turning over your application. 

Yes, but you and your spouse will both need to be named as joint primary cardholders prior to applying for a balance transfer. Adding yourself as a joint primary cardholder can be done easily via phone or online banking.

No. The amount you repay each month is not influenced just by the credit cards interest rate. The good news is that you will have a lot more control over it. You can opt to either pay the minimum payment - which will mean it will take you much longer to repay your debt - or you can usually ask to repay a set amount each month.

Minimum repayments are usually set as a percentage of your overall balance but the percentage can vary, typically between 1% and 3%. If there is a chance you won’t be able to afford the minimum payment, if it is higher than your current card, be sure to check before you apply for a credit card.