A longer 0% deal or a smaller transfer fee: which costs less?
Illustrative offers and original calculations · Not a live product comparison
More months at 0% can be useful, but they are not automatically worth a larger fee. The deciding question is how quickly you can repay the balance without making the rest of your budget unworkable.
Two examples, not two products
The offers below are invented for this comparison. Neither represents a named card or a promise of acceptance. Both assume the full balance and any fee stay interest-free for the stated period, no new spending and no other charges.
| Feature | Example A | Example B |
|---|---|---|
| 0% period | 12 months | 24 months |
| Transfer fee | 0% (£0) | 3% (£75) |
| Starting balance | £2,500 | £2,575 |
| Monthly target to clear in time | £208.34 | £107.30 |
If you can repay £210 a month
The shorter offer gives enough time under these assumptions. In Example A, eleven £210 payments leave £190 for the final payment. In Example B, eleven £210 payments leave £265, so a twelfth £210 payment would still leave £55 for month 13.
Example A costs £75 less in transfer fees. Under these assumptions, there is no need to pay for the extra months if £210 is comfortably affordable and the shorter offer is available to you.
If you can repay £150 a month
After 12 payments, Example A would still have £700 outstanding. Its 0% period would then end, so the next stage depends on the rate and terms that apply afterwards.
Example B would have £775 left after those same payments, but another 12 interest-free months available. Five more £150 payments and a final £25 would clear it in month 18. Its cost under our assumptions is the £75 transfer fee.
To finish the cost comparison, you need Example A’s follow-on rate. Calculate the interest on its remaining £700 and compare that cost with Example B’s £75 fee.
Use the example as a checklist
For a real offer, replace every assumption: transfer amount, fee, confirmed promotional period and the payment you can maintain. Also check minimum payments, transfer restrictions and any annual charge.
A monthly target is not a lender’s minimum. If the actual minimum is higher, you must meet that amount. Leave room to review the plan if your circumstances change rather than relying on another transfer at the end.
Sources & further reading
Sources checked on 3 November 2026. Examples are illustrative unless identified as reported figures or a provider’s terms. General information, not personal financial advice.