Calculator
Balance Transfer
Calculator
Enter your current debt and a balance transfer offer. We'll show you exactly how much you save — or lose — and give you a clear verdict on whether it's worth it.
Current debt
Balance transfer offer
If you stay on current card
Time to pay off
3 yr 2 mo
Total interest
$3,286
Transfer — paid off in promo
Transfer fee
$240
3% of balance
Monthly needed
$550/mo
to clear in 1 yr 3 mo
Total cost (fee only)
$240
0% interest saved
Transfer — NOT paid off in promo
Balance remaining
$3,740
after 1 yr 3 mo promo
Total months
2 yr 6 mo
to full payoff
Total interest + fee
$812
Example shown using $8,000 at 22.9% APR. Enter your numbers above to personalize.
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How balance transfers work
Step 1
Apply for a balance transfer card
Look for a card offering 0% intro APR on balance transfers for 12–21 months. Most competitive offers require a credit score of 670 or higher.
Step 2
Transfer your balance
Move your existing high-interest balance to the new card. A transfer fee — typically 3–5% of the amount — is added to your new balance.
Step 3
Pay it down aggressively
Divide your total balance by the number of promo months. Hitting that payment every month clears the debt before interest kicks in.
Step 4
Watch the deadline
Any remaining balance when the promo period ends starts accruing interest at the card's regular APR — often 20–29%. Missing the deadline can cost more than staying put.
When is a balance transfer worth it?
A balance transfer saves you money when the interest you avoid during the promotional period is greater than the transfer fee you pay upfront. The math depends on three variables: your current APR, the length of the promo period, and whether you can realistically clear the balance in time.
High current APR (18%+)
The higher your current interest rate, the faster a 0% transfer pays off the fee. At 22% APR on a $5,000 balance, you're paying roughly $90/month in interest alone — a 3% fee ($150) pays for itself in under 2 months.
You can pay it off in the promo window
Divide your transferred balance by the promo months. If that monthly number fits your budget, a balance transfer is almost always worth it.
You can't pay it off in time
If the balance rolls over at a high post-promo APR, you may end up paying more than staying on your current card — especially after adding the transfer fee.
The post-promo APR is high
Some balance transfer cards have post-promo APRs higher than your current card. Always check the ongoing rate before applying — the calculator above factors this in automatically.
Balance transfer vs. debt consolidation loan
Both strategies move high-interest debt into a lower-rate vehicle. The right choice depends on how much debt you have and your credit profile.
| Factor | Balance Transfer | Personal Loan |
|---|---|---|
| Intro rate | 0% for 12–21 months | Fixed rate (7–25%) |
| Best for | Balances under $10k you can clear fast | Larger balances with longer timelines |
| Upfront cost | 3–5% transfer fee | 0–5% origination fee |
| Credit required | Good–excellent (670+) | Fair–excellent (580+) |
| Risk | High if promo window missed | Predictable fixed payments |
Frequently asked questions
Is a balance transfer worth it?
A balance transfer is worth it when the interest you save during the promotional period exceeds the transfer fee. With a typical 3% fee on a high-APR balance, a 15-month 0% offer can save hundreds to thousands of dollars — but only if you pay off the balance before the promo period ends. Use the calculator above to run the exact numbers for your situation.
What is a balance transfer fee and how is it calculated?
A balance transfer fee is a one-time charge for moving debt to a new card, typically 3–5% of the transferred amount. On an $8,000 balance with a 3% fee, you pay $240 upfront — that amount is added to your new balance, so you'd owe $8,240 on day one.
What happens if I don't pay off the balance before the promo period ends?
The remaining balance starts accruing interest at the card's standard APR — often 20–29%. Some cards also apply deferred interest, retroactively charging interest from the date of transfer. Always read the fine print and set a calendar reminder before the promo deadline.
Can I transfer debt from multiple cards?
Yes, most balance transfer cards allow transfers from multiple accounts as long as the total doesn't exceed your new card's credit limit. Some issuers cap transfers at a percentage of the limit (e.g., 90%). You typically can't transfer balances between cards from the same bank.
Does a balance transfer hurt my credit score?
Applying for a new card causes a hard inquiry — a small, temporary dip of 5–10 points. However, if the transfer lowers your overall credit utilization (by giving you more available credit), your score may improve over time. Paying on time every month during the promo period has a positive long-term impact.
Related resources
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