How This Balance Transfer Calculator Works
A balance transfer moves your existing credit card debt to a new card with a lower or 0% promotional APR. This calculator compares the cost of keeping your current card versus transferring the balance.
- Enter your current balance and APR.
- Enter the new card’s promotional APR (usually 0%) and the promo period length.
- Enter the balance transfer fee (typically 3–5% of the transferred amount).
- Enter your planned monthly payment.
- Click “Calculate My Savings” to see your total savings.
Example Calculation
Here’s how much a balance transfer can save on a $5,000 balance:
Scenario: $5,000 at 24.99% APR → 0% for 15 months, 3% fee
Even after paying a $150 transfer fee, you save approximately $700 in interest over the 15-month promotional period. That’s money that goes toward paying down your actual debt instead of interest charges.
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How This Calculator Works
This calculator compares the total cost of keeping your debt on your current card versus transferring it to a 0% promotional APR card. It accounts for the balance transfer fee (typically 3–5% of the transferred amount), the length of the 0% promotional period, and your monthly payment. The result shows your net savings after the fee — so you can see whether the transfer is actually worth it for your specific balance and payment amount.
The calculator assumes you make the same monthly payment in both scenarios. If you can pay off the full balance before the promotional period ends, the savings are maximized. If a remaining balance carries over after the 0% period, it begins accruing interest at the card’s standard APR.
When Should You Use This Tool
Use this calculator before applying for a balance transfer card. The transfer fee is paid upfront, so you need to know whether the interest savings during the promotional period outweigh that cost. In most cases, a balance transfer makes financial sense if you can pay off or significantly reduce the balance within the 0% period — but the math depends on your specific balance, rate, and payment amount.
This tool is also useful for comparing multiple balance transfer offers with different promotional periods or fee structures. Enter each offer’s terms separately and compare the net savings side by side.
Example Calculation
Suppose you have a $5,000 balance at 23% APR and you pay $200 per month. Staying on the current card, you would pay approximately $2,100 in interest before the balance is cleared. If you transfer to a 0% card with a 3% transfer fee and an 18-month promotional period, the fee costs $150 upfront. Paying $200 per month for 18 months reduces the balance to about $1,400, which then begins accruing interest at the card’s regular APR.
Even accounting for the transfer fee and post-promotional interest, the total savings in this scenario are typically $800–$1,100 compared to staying on the original card — a significant difference for a straightforward one-time action.