Loan Balance Transfer Calculator US
Compare your current loan with a balance transfer to a lower rate, net of processing fee.
How it works
Compound interest earns returns on both your original money and the returns already added. Adding a regular monthly contribution accelerates growth further over time.
A = P(1 + r/n)^(nt) + contributions compounded monthly- Longer time horizons benefit most from compounding
- More frequent compounding gives slightly higher growth
- The donut shows how much of your final balance is interest vs money you put in.
Frequently asked questions
What is a loan balance transfer?
It moves your remaining loan balance to a new lender at a lower interest rate to reduce the interest you pay over the rest of the term.
When is a balance transfer worth it?
When the rate reduction is significant, the outstanding balance is large, and enough of the term remains for the interest saving to exceed the fees.
What fees are involved?
Lenders may charge a processing or transfer fee, often a small percentage of the balance. Credit-card transfers commonly charge 3–5% upfront.
Does a balance transfer hurt my credit?
A new application may cause a small, temporary dip from the credit check, but reducing your interest costs and balance over time can be positive.
How do I know my real saving?
Subtract all transfer and processing fees from the interest you would save at the new rate. If the result is clearly positive, the transfer helps.
Is it better to transfer or prepay?
If you have spare cash, prepaying cuts interest directly; a transfer helps when you want a lower rate on the balance you carry. They can also be combined.
What a balance transfer does
A balance transfer moves your outstanding loan (or credit-card balance) to a new lender offering a lower interest rate. The aim is to cut the interest you pay on the remaining balance — but the saving has to be weighed against any fees and the time left on the loan.
When it is worth it
A transfer tends to pay off when the rate drop is meaningful, the outstanding balance is sizeable, and a good chunk of the term remains. If you are near the end of a loan — when little interest is left to charge — the saving is often too small to justify the effort and fees.
Count the fees
New lenders may charge a processing or transfer fee (often a small percentage of the balance), and credit-card balance transfers commonly charge 3–5% upfront. Subtract every fee from your projected interest saving to find the real benefit — this calculator does that comparison for you.
Worked example
Moving a $15,000 balance with 4 years left from 14% to 9% can save several thousand dollars in interest. If the transfer fee is 1% ($150), you subtract it from the saving to confirm the move still comes out clearly ahead.
Results are estimates for general guidance in United States and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.