1. What is the Personal Loan Balance Transfer Calculator?

The Personal Loan Balance Transfer Calculator helps you determine potential savings when transferring your loan balance to a new lender with different interest rates and fees.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Old\ Interest \) — Total interest you would pay on current loan (USD)
• \( New\ Interest \) — Total interest you would pay on new loan (USD)
• \( Transfer\ Fee \) — Fee charged for transferring the balance (USD)

Explanation: The calculator compares the total interest costs between your current and new loan, then subtracts any transfer fees to show your net savings.

3. Importance of Balance Transfer Calculation

Details: Calculating potential savings helps you make informed decisions about whether a balance transfer is financially beneficial, considering both interest rates and fees.

4. Using the Calculator

Tips: Enter the total interest amounts for both loans and the transfer fee in USD. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What counts as "total interest"?
A: This is the sum of all interest payments you would make over the entire loan term under the current or proposed terms.

Q2: Should I include other fees besides the transfer fee?
A: This calculator focuses on the transfer fee, but you may want to consider other costs like annual fees or early repayment penalties separately.

Q3: What if the result is negative?
A: A negative result means the transfer would cost you more than staying with your current loan.

Q4: How accurate is this calculation?
A: This provides a basic comparison. For precise figures, consult your loan agreements or a financial advisor.

Q5: Does this account for different loan terms?
A: The calculation assumes you're comparing total interest over the same period. Different terms would require more complex analysis.