Balance Transfer Calculator
See how much you save by transferring credit card debt to a 0% intro APR card.
What this calculator does
This balance transfer calculator works out whether moving credit card debt to a 0 percent promotional offer is worth the transfer fee. Enter your balance, the APR you are paying now, the fee percentage, the length of the promotional window, and your monthly payment, and it returns the interest avoided, the fee in dollars, and the net saving.
It simulates both cards month by month rather than assuming a static balance, so the interest avoided reflects a debt that shrinks as you pay it. The month-by-month table shows the two balances side by side — the transferred balance falling in a straight line, the old one dragged down by interest.
When to use it
The obvious case is a large balance on a high-rate card with a promotional offer available. But the calculation matters most when the answer is close: a 5 percent fee on a 12-month offer is a very different proposition from a 3 percent fee on 21 months, and the difference is not obvious until you see the net figure.
It is equally useful as a reality check on whether you can clear the balance inside the window. Set the monthly payment to what you can genuinely afford rather than what would be ideal, and see where the transferred balance lands at the end of the promotional period. Anything left over reverts to the go-to rate.
Understanding the inputs
Balance is what you would move across. The transfer fee is charged as a percentage of that amount and is normally added to the transferred balance rather than billed separately, so the calculator starts the new card slightly above your old balance.
Current APR should be the purchase rate on your existing card, which you will find on your statement. Intro months is the promotional window, commonly 12 to 24. The monthly payment is the lever that decides everything — the calculator applies it to both cards so the comparison is like for like.
How is this calculated?
Transfer Fee = Balance × Fee %. Interest Saved = Months × (Balance × Current APR / 12). Net Saving = Interest Saved − Transfer Fee.
A worked example
Take an $8,000 balance at 21.9 percent APR moved to an 18-month 0 percent offer with a 3 percent fee. The fee is $240, making the transferred balance $8,240, which needs about $458 a month to clear inside the window — and at that payment it does clear, with nothing reverting to the go-to rate.
Staying put and paying the same $458 a month would take 22 months and cost about $1,722 in interest. Across the 18-month promotional window the transfer avoids roughly $1,666 of interest, and after the $240 fee the net saving is about $1,426. The fee is recovered in the first month and a half.
Limitations and assumptions
The calculator assumes no new purchases on either card, no missed payments, and that the full balance is accepted for transfer — issuers routinely approve less than requested. It also assumes the promotional rate is genuinely 0 percent rather than a low non-zero rate.
It does not model what happens if you fail to clear the balance in time, which is where transfers most often go wrong, nor the loss of the promotional rate that a late payment can trigger under most card agreements. Read the offer terms, particularly the go-to APR and the conditions that forfeit the promotion.
Common Questions
- How much is a balance transfer fee?
- Typically 3 to 5 percent of the amount transferred, charged up front and added to the new balance. On $8,000 that is $240 to $400. A handful of cards advertise no transfer fee, usually with a shorter intro period, so the right comparison is fee plus interest avoided over the whole window rather than fee alone.
- What happens when the 0% intro period ends?
- The go-to APR applies to whatever is left, and that rate is often above 20 percent. There is no grace and no partial credit for progress made. This is why the only reliable way to use a balance transfer is to divide the balance plus fee by the number of intro months and pay exactly that.
- Does a balance transfer hurt my credit score?
- Short-term dip from the hard inquiry and the new account lowering your average age. Medium-term it often helps: a new card adds credit limit, which lowers your overall utilization ratio, and utilization is 30 percent of a FICO score. Keeping the old card open rather than closing it preserves that benefit.
- Can I transfer a balance between cards from the same bank?
- No. Issuers do not allow transfers between their own accounts, since there is nothing in it for them. If you hold cards from one bank you will need an offer from a different issuer, which is worth knowing before applying for a card whose promotion you cannot actually use.
- Should I make purchases on a balance transfer card?
- Almost never. Purchases may carry a different rate, and payment allocation rules under the CARD Act direct anything above the minimum to the highest-rate balance first — which can leave a purchase balance accruing interest while your payment clears the promotional one. Keep the transfer card for the transfer only.
- How long are 0% intro periods?
- Commonly 12 to 21 months on transfers, with the longest offers reserved for strong credit. The length matters more than the fee: a 21-month window at a 5 percent fee usually beats a 12-month window at 3 percent, because it gives you a realistic chance of clearing the balance before the go-to rate arrives.
- What credit score do I need for a good transfer offer?
- The long 0 percent offers generally require good to excellent credit, roughly a FICO of 690 and up, with the best terms above 720. Issuers also assess income and existing exposure, and the credit limit they grant may be less than the balance you wanted to move, leaving part of it behind.
- Is a personal loan better than a balance transfer?
- It depends on whether you can clear the balance inside the intro window. If you can, 0 percent beats any loan rate. If the balance would take three or four years to repay, a fixed-rate personal loan with a defined end date is safer, because it removes the cliff edge at the end of the promotional period.
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