Are you guaranteed to save money when transferring a balance?

No. You only save money if the interest you avoid is higher than the fee for transferring the balance. For small amounts that can be paid off in a month or two, it may not make sense to pay a 3% to 5% transfer fee.

What happens after the introductory phase with the 0% offer has ended?

The credit card's standard APR will be applied to the remaining balance and only that amount is affected. With a true 0% offer, there are no retroactive interest charges so the 0% period remains truly interest-free.

How is the balance transfer fee calculated?

The amount being transferred is multiplied by a certain percentage and usually charged between 3% to 5%. It is charged once and added to the new balance. If an amount of 5,000 is being transferred and the fee is 3%, then the fee will be 150.

How much debt can you transfer?

The approved credit limit on your new card is the limit but this will usually be less than the total balance. The bank may also set a lower amount for transfers than the credit limit and usually does not allow transfers between two cards from the same bank.

Is a lower fee or longer term better with 0%?

It depends on how quickly you want to pay off the amount. If it will take several months for the balance to be paid in full, a longer 0% term can be beneficial. However, if you are able to pay off the amount soon, then a lower fee is better. The break-even fee shown at the bottom shows the point where the transfer no longer results in savings.

Balance Transfer Calculator

Your debt and the transfer offer

Current card balance

Current card APR

Monthly payment

Balance transfer fee

0% intro period

Intro APR

APR after the intro period

Add an annual fee

Include a yearly fee on the new card in the comparison.

You save by transferring

Cost to keep your current card

Cost to transfer (fee + interest)

You save by transferring

Months to clear (keep card)
Months to clear (transfer)
Months sooner debt-free

Balance transfer fee: $
New balance after fee: $
Payment to clear before 0% ends: $

Break-even fee: %

Transferring saves you about $1,114.2 after the $150 fee, and clears the debt 5 months sooner.

You do not clear the balance before the intro period ends. The balance left after 18 mons then accrues interest at 21% APR.

Charts and payoff schedule

Show the cost comparison

Compare interest and fees on each card.

Show the balance over time

Plot how each balance falls month by month.

Show the payoff schedule

A month-by-month table for the transferred balance.

Transfer card payoff schedule
Month	Payment ($)	Interest ($)	Balance ($)
1	250	0	4,900
2	250	0	4,650
3	250	0	4,400
4	250	0	4,150
5	250	0	3,900
6	250	0	3,650
7	250	0	3,400
8	250	0	3,150
9	250	0	2,900
10	250	0	2,650
11	250	0	2,400
12	250	0	2,150
13	250	0	1,900
14	250	0	1,650
15	250	0	1,400
16	250	0	1,150
17	250	0	900
18	250	0	650
19	250	11.37	411.38
20	250	7.2	168.57
21	171.52	2.95	0

A balance transfer calculator can show you whether or not you'll actually save money by transferring your credit card debt to a new card that offers a lower or 0% introductory rate. By entering the outstanding amount, current interest rate and monthly payment, the tool compares the interest you'd pay if you continued using your original card with the interest on the new card plus any transfer fee. This will show you how much money you could save and how quickly you'll be able to pay off your debt.

What is a balance transfer?

A balance transfer is the process of moving your outstanding credit card balances to another credit card. Typically, this will be a card that offers a low introductory interest rate for a set period of time. There is usually a one-time transfer fee associated with the new card, which can range from 3% to 5% of the amount being transferred. This means that your debt will pay off faster since more of your payments during the introductory period will go towards paying down the principal rather than interest.

What you should compare are the fees and potential interest savings. If you have a high rate of interest and large outstanding balance it may be worth paying some percentage in fee up front as this is usually much less than several months of interest, but with small balances that can be paid off within one or two months the fees could outweigh the savings.

How to use this calculator:

First enter the current information for your credit card including the balance, annual percentage rate (APR), and monthly payment amount that you will continue to make. Next, enter the information on the offer transfer including the transfer fee, length of time with 0% interest, introductory APR, and standard APR after the promotional period ends.

The results panel shows the actual savings, cost for each of the two options and how many months earlier you will be out of debt. If the new card has an annual fee, please select the "Annual Fee" option. The panel also shows the amount needed to pay off the balance in full before the 0% period ends so that you can try to avoid paying any interest at all.

Here's how it works:

Each month the interest is added to the balance based on the monthly interest rate before the repayment amount is deducted. The monthly interest rate is the result of dividing the annual percentage rate (APR) by twelve.

\text{interest}_{\text{month}} = \text{balance} \times \frac{\text{APR}}{12}

The transfer fee is added to the balance being transferred which results in a slightly higher starting balance on your new card.

\text{new balance} = \text{balance} \times \left(1 + \text{fee}\%\right)

In the first few months there is usually a introductory rate which is typically zero percent. After that the remaining balance will be charged at the standard APR. The savings are the difference between the interest you don't have to pay and the cost of transferring the cards.

\text{savings} = \text{interest}_{\text{stay}} - \left(\text{fee} + \text{interest}_{\text{transfer}}\right)

Let's take a concrete example: suppose your credit card balance is $10,000, the interest rate is 24% and you pay back $300 per month. If you keep the original card, it will take 56 months to pay off the debt and you'll end up paying $6,644 in interest. If you transfer the balance to a credit card with a 3% (or $300) transfer fee, then 0% APR for 12 months followed by 25%, it will take 43 months to pay off the debt and you'll end up paying $2,409 in interest. The total cost of the transfer is $2,709, which results in a savings of about $3,935 and speeds up the payoff by more than one year.

Input	Meaning	Example
Balance	What you owe now	10,000
Current APR	Rate on your current card	24%
Monthly payment	What you keep paying	300
Transfer fee	One-time fee on the amount moved	3%
Intro period	Length of the promotional rate	12 months
Intro APR	Rate during the promotion	0%
APR after intro	Standard rate afterward	25%

When is a credit transfer useful?

A move can be worthwhile if the interest saved is more than the fees incurred. A calculator will show you the break-even point for the fees. As long as your actual fees don't exceed that amount, a move will be beneficial. That amount is affected by two factors: A longer 0% rate period is better suited if it takes several months to reduce the balance. Lower fees are more appropriate if you can pay off the balance quickly.

The biggest savings are not from the card itself but rather the amount of debt transferred. The higher the interest rate and the larger the balance, the more valuable it is to avoid paying interest, which magnifies the benefits of a transfer.

What happens after the 0% period ends?

If there is a remaining balance at the end of the promotion, then the standard APR will only be applied to that amount. A true 0% offer does not charge retroactive interest so the months during the 0% period remain interest free. This is different from deferred credit card offers where if the remaining balance is not paid in full by the due date, any interest already accrued may become due all at once.

If payments are late, the promotional offer may end prematurely and penalty interest will be charged. Therefore, you should make timely payments throughout the term of your introductory credit offer.

This calculator is for general informational and planning purposes only and does not constitute financial advice. Card terms, fees and credit limits may vary and results are based on the offers available. Please review your card's contract carefully and contact your issuer before making a transfer.

Frequently asked questions

Are you guaranteed to save money when transferring a balance?: No. You only save money if the interest you avoid is higher than the fee for transferring the balance. For small amounts that can be paid off in a month or two, it may not make sense to pay a 3% to 5% transfer fee.
What happens after the introductory phase with the 0% offer has ended?: The credit card's standard APR will be applied to the remaining balance and only that amount is affected. With a true 0% offer, there are no retroactive interest charges so the 0% period remains truly interest-free.
How is the balance transfer fee calculated?: The amount being transferred is multiplied by a certain percentage and usually charged between 3% to 5%. It is charged once and added to the new balance. If an amount of 5,000 is being transferred and the fee is 3%, then the fee will be 150.
How much debt can you transfer?: The approved credit limit on your new card is the limit but this will usually be less than the total balance. The bank may also set a lower amount for transfers than the credit limit and usually does not allow transfers between two cards from the same bank.
Is a lower fee or longer term better with 0%?: It depends on how quickly you want to pay off the amount. If it will take several months for the balance to be paid in full, a longer 0% term can be beneficial. However, if you are able to pay off the amount soon, then a lower fee is better. The break-even fee shown at the bottom shows the point where the transfer no longer results in savings.

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Disclaimer: This calculator is provided for general informational and educational purposes only. Our calculators are under active development, and results may be inaccurate, incomplete, or unsuitable for your situation. Always verify the figures independently and seek advice from a qualified professional before relying on them. We make no warranties and accept no liability for any loss or decision arising from use of this tool.

References

Consumer Financial Protection Bureau: What is a balance transfer?
Federal consumer guidance on balance transfers and fees.
Investopedia: Balance Transfer
Definition, fees, and how intro-APR transfers work.