Balance Transfer Savings Calculator

A balance transfer card can save you hundreds or thousands in interest — but only if the math works in your favor. The transfer fee (typically 3-5% of your balance) eats into your savings, and if you don’t pay off the balance during the promo period, you could end up right back where you started.

This calculator runs both scenarios side by side so you can see the real numbers before you apply.

How to Use This Calculator

Enter your current situation and the balance transfer offer you’re considering:

1. Current balance — The amount you owe on your existing card.
2. Current APR — Your card’s current interest rate. Check your latest statement or app.
3. Transfer fee — Most balance transfer cards charge 3-5%. Some offer 0% transfer fees but shorter promo periods.
4. Promo APR — Usually 0%, but some cards offer a low rate like 3.99% instead.
5. Promo period — How long the intro rate lasts. Common offers are 12, 15, 18, or 21 months.
6. Monthly payment — How much you plan to pay each month. The calculator will tell you if that’s enough to pay off during the promo period.

The calculator compares your total cost under both scenarios and tells you whether the transfer is worth it.

When a Balance Transfer Makes Sense

Balance transfers work best when:

• Your current APR is high (18%+ is typical for credit cards) and the promo rate is 0%.
• You can pay off the balance during the promo period. This is the most important factor. If you can’t, you’ll face the card’s regular APR (often 20%+) on whatever’s left.
• The transfer fee doesn’t wipe out your savings. On a $5,000 balance, a 3% fee is $150. If you’d only save $120 in interest, the transfer actually costs you money.
• You won’t add new charges. Balance transfer cards should be payoff tools, not spending tools.

When It Doesn’t Make Sense

• Small balances with short payoff timelines. If you’re 3 months from paying off $800, the transfer fee might cost more than the interest you’d save.
• You can’t make large enough payments. If you transfer $8,000 to a 15-month 0% card but can only pay $300/month, you’ll still have $3,500 left when the promo ends — and the regular APR kicks in.
• Your credit score is below 670. Most 0% APR balance transfer cards require good to excellent credit. If you’re not sure you’ll be approved, the hard inquiry on your credit report may not be worth the risk.

FAQ

What happens when the promo period ends?

Any remaining balance starts accruing interest at the card’s regular APR, which is often 20-27%. This is why paying off the full balance during the promo period matters so much. The calculator shows you the breakeven monthly payment needed to clear the balance in time.

Does a balance transfer hurt my credit score?

Applying for a new card creates a hard inquiry, which may drop your score 5-10 points temporarily. However, if the new card increases your total available credit, your utilization ratio improves — which usually helps your score within a few months. On balance, a transfer often helps more than it hurts if you’re paying down debt.

Can I transfer a balance from one card to another at the same bank?

Usually no. Most banks don’t allow balance transfers between their own cards. You’ll need to transfer to a card from a different issuer. Check the offer terms before applying.

Should I close my old card after the transfer?

Generally, no. Closing a credit card reduces your total available credit, which can raise your credit utilization ratio and lower your score. Keep the old card open (with a $0 balance) unless it has an annual fee that isn’t worth paying.