How to use this calculator
- Enter the Balance to transfer, your Current card APR and the Monthly payment you plan to make.
- Add the Transfer fee as a percentage and the Promotional rate (often 0%) with its Promotional period in months.
- Set the Rate after the promotion that applies to any balance left when the offer ends.
- Read the Savings from the transfer and compare payoff times; the last row shows the payment needed to clear it within the promotion.
How the comparison works
The calculator runs two payoff schedules with the same monthly payment. In the first you stay on your current card and interest accrues at its APR. In the second, the fee is added to the transferred balance, interest accrues at the promotional rate for the promo months, then at the post-promo rate until the balance is gone.
Savings = Interest(stay) − [Fee + Interest(after transfer)]- Fee = balance × transfer fee %
- Interest(stay) = interest paid at your current APR with the same payment
- Interest(after transfer) = interest at the promo rate, then the post-promo rate
Savings are the interest you avoid minus the fee you pay. If the transfer costs more than it saves, the result is negative and you should stay.
Example: $6,000 moved from a 24% card to 0% for 15 months
With a 3% fee ($180) and $400 a month, staying put costs $1,205 in interest and takes 19 months. After the transfer, interest is only $3.60, payoff takes 16 months, and net savings are $1,021.
The bottom row shows the payment needed to clear the balance inside the promo: $412 a month. At exactly $412 interest after transfer is $0, payoff takes 15 months and savings are $984 against $1,164 of interest avoided.
When a transfer pays off, and when it does not
A lower payment makes the offer more valuable but riskier. At $200 a month the same transfer saves $2,389, yet $686 of interest still accrues because the balance is not cleared before the promo ends. Raising the fee to 5% with $300 a month leaves savings of $1,302.
A short promo hurts. A 3-month promo at 0% that reverts to 27% saves only $95 on the base example. The fee is paid upfront while the rate benefit lasts only a few months.
How to use the result
Divide the balance plus fee by the promo months: that is the payment that avoids interest altogether. If you cannot reach it, check how much balance remains when the promo ends and which rate then applies.
Pair this with the credit card payoff calculator to see your debt-free date, and look at the debt consolidation calculator if you hold several debts and a fixed-rate loan might fit better.
Mistakes to avoid
- Running up new purchases on the old card after moving the balance.
- Missing a payment: many offers cancel the promotional rate if you pay late.
- Forgetting that new purchases on the new card may carry a higher rate than the transferred balance.
- Counting on a 0% rate without checking the fee, the promo length and the post-promo APR in the terms.
- Applying for several cards at once; each application can affect your credit.
Assumptions and limits
The model assumes a fixed monthly payment, no new purchases, fixed rates and interest added monthly. It ignores annual fees, late fees, penalty APRs, cash-advance style fees, credit score effects and any minimum-payment rules on the new card.
Offers change often and approval is not guaranteed. Read the offer's terms before applying and confirm the fee and rate with the issuer.
Frequently asked questions
Is a balance transfer worth it?
Usually when the interest you avoid is clearly larger than the fee and you can pay off most of the balance during the promotion. The calculator shows that net figure.
How is the balance transfer fee calculated?
As a percentage of the amount moved, added to the new balance. For example, 3% on $6,000 is $180.
What happens when the 0% period ends?
Any remaining balance starts accruing interest at the standard rate in your agreement. Enter that rate under rate after the promotion.
Does a balance transfer hurt my credit score?
Applying creates a hard inquiry and a new account, which can lower scores temporarily. Lower utilization on the old card may help later.