Balance Transfer Calculator
Calculate if a balance transfer to a 0% APR credit card can save you money. Compare transfer fees against interest savings.
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Balance Transfer Card
Balance Transfer Analysis
Cost Comparison
Payoff Timeline
How Balance Transfers Work
A balance transfer moves debt from one credit card to another, typically to take advantage of a lower or 0% introductory APR. You'll usually pay a transfer fee (3-5%), but the interest savings often outweigh this cost.
Best Balance Transfer Cards
Look for cards with:
- Long 0% APR intro period (15-21 months)
- Low transfer fee (3% or less)
- No annual fee
- Reasonable regular APR after intro
Balance Transfer Pitfalls to Avoid
- Missing payments: May void your 0% APR
- New purchases: Often charged at regular APR
- Not paying off in time: Regular APR kicks in after intro
- Transferring to same bank: Usually not allowed
- Running up old card: Don't add new debt!
Frequently Asked Questions
A balance transfer is usually worth it if the interest savings exceed the transfer fee. Use this calculator to see your specific savings. Generally, transfers make sense for balances you can pay off during the intro period.
Most banks don't allow transfers between their own cards. You'll need to transfer to a card from a different issuer. Check the terms before applying.
Any remaining balance will start accruing interest at the regular APR. Try to pay off the full balance before the intro period ends to maximize savings.
About the Balance Transfer Calculator
Balance transfer cards offer 0% APR on transferred debt for a promotional period — usually 12-21 months. The catch: a 3-5% transfer fee, and the rate jumps to 20%+ after the promo. Done right, balance transfers save thousands. Done wrong, they make things worse.
The Formula
Net savings = Interest avoided at old card rate − Transfer fee − Interest after promo (if balance remains). Break-even: only worth doing if you can pay the balance off during the promo period.
Worked Example
$8,000 balance at 22% APR, transferring to 0% for 18 months with 3% fee. Transfer fee: $240. If paid off in 18 months at $447/month: total cost $8,240 (just the fee). Compare to keeping at 22%: $8,000 + ~$1,500 interest if paid same time.
The promo-period math
Calculate the monthly payment needed to fully pay off the transferred balance before the promo ends. If you can't afford that payment, the back-end rate jump can erase the savings.
Deferred interest vs 0% interest
True 0% APR: no interest during promo, period. Deferred interest (some store cards): if any balance remains at promo end, you owe the entire promo-period interest retroactively. Always confirm which type — look for 'no interest if paid in full'.
Multiple transfers
If you can't pay off the balance in 18 months, you might transfer the remainder to a second card with another 0% offer. Risky — relies on continued approval and ignores root cause of the debt.
Common Mistakes
- Using the freed-up credit limit on the original card to spend more.
- Missing a payment on the transfer card. Most lose the 0% promo immediately for late payments.
- Not calculating whether you can actually pay it off in the promo period. The math matters.
Frequently Asked Questions
Can I transfer between cards from the same issuer?
Usually not — most issuers prohibit BT between their own cards.
Does a balance transfer hurt my credit?
Hard inquiry and new account temporarily. If you don't close the old card, utilization may improve. Net small impact.
This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making significant financial decisions.