Balance Transfer Calculator
See how much you can save by moving high-interest credit card debt to a card with a lower or 0% promotional APR. Factors in the transfer fee so you get a true net savings figure.
About this calculator
A balance transfer moves existing credit card debt to a new card, typically with a lower promotional APR for a set period. The net savings formula is: Savings = (currentBalance × currentAPR/100/12 × promoLength) − (currentBalance × transferAPR/100/12 × promoLength) − (currentBalance × transferFee/100). The first term is the interest you would have paid on your old card during the promotional window. The second term is the interest owed on the new card during the same period. The third term is the one-time transfer fee, usually 3–5% of the balance. If savings is positive, the transfer is financially worthwhile. Note that this formula assumes a static balance; if you continue spending or only make minimum payments, the actual savings will differ. The break-even point occurs when the fee equals the interest differential.
How to use
Suppose you have a $6,000 balance at 22% APR, transferring to a card with 0% promo APR for 12 months and a 3% transfer fee. Savings = (6000 × 0.22/12 × 12) − (6000 × 0/12 × 12) − (6000 × 0.03). Interest saved = $6,000 × 0.22 = $1,320. New card interest = $0 (0% promo). Transfer fee = $6,000 × 0.03 = $180. Net savings = $1,320 − $0 − $180 = $1,140. In this scenario the balance transfer saves you $1,140 over the 12-month promotional period, making it clearly worthwhile if you can pay off the balance before the promo rate expires.
Frequently asked questions
How do I know if a balance transfer is worth the transfer fee?
A balance transfer is worth it when the interest you avoid during the promotional period exceeds the one-time transfer fee. Divide the transfer fee by your current monthly interest charge to find your break-even month — if the promo period extends beyond that point, you come out ahead. For example, a 3% fee on $5,000 is $150, and if your current card charges $90/month in interest, you break even after just under two months. The longer the promotional period and the higher your current APR, the more valuable the transfer becomes.
What happens to my balance transfer savings if I don't pay off the balance before the promotional period ends?
When the promotional period ends, the remaining balance is typically subject to the card's standard APR, which can be 20% or higher. This can rapidly erode or eliminate the savings you gained during the promo window. Some cards also apply deferred interest retroactively if the balance is not fully paid — meaning you owe interest back to the transfer date. Always read the card agreement carefully and set up a repayment plan that clears the balance before the promo period expires.
Can I do a balance transfer if I have bad credit, and will it affect my credit score?
Balance transfer cards with low promotional APRs generally require good to excellent credit (typically a score of 670 or above), so approval with bad credit is difficult. Applying for a new card triggers a hard inquiry, which can temporarily lower your score by a few points. However, if approved, the new available credit can improve your credit utilization ratio, which may positively affect your score over time. If you don't qualify for a promotional-rate card, consider other options like a personal loan or debt management plan instead.