Balance Transfer Savings Calculator
A balance transfer moves high-APR credit card debt to a promotional low-rate or 0% APR card, saving interest during the introductory period. The net saving is the interest you would have paid on the original card during that period, minus the one-time transfer fee. This calculator simulates both paths: staying on the current card and paying a fixed amount monthly, versus transferring and paying the same fixed amount on the new card. It shows net savings after accounting for the transfer fee.
Balance transfer savings formula
Transfer fee = balance * fee% / 100. Net savings = interest saved (original card) - interest paid (new card during promo) - transfer fee.
Simulate both cards for the promotional period making the same monthly payment. The interest saved is the interest that would have accrued on the original card minus any interest on the new card (usually zero during 0% promo), minus the transfer fee.
Is a balance transfer worth it?
A balance transfer is worthwhile when the interest saved exceeds the transfer fee. For a $5,000 balance at 22% APR, the monthly interest alone is about $92. Over 18 months paying $300 per month, you would pay about $930 in interest on the original card. A 3% transfer fee on $5,000 is $150. If the promotional card charges 0% for 18 months, net savings are approximately $780. Always read the full terms: some promotional cards charge deferred interest (all accrued interest is charged if you do not pay in full by the deadline).
Frequently asked questions
How does a balance transfer save money?
A balance transfer moves your existing credit card balance to a new card with a lower or 0% promotional APR. During the promotional period, little or no interest accrues, so more of each payment reduces principal. The savings equal the interest you would have paid minus the transfer fee.
What is a typical balance transfer fee?
Most US issuers charge 3% to 5% of the transferred balance as a one-time fee. Some cards with shorter promotional periods charge no fee. The CFPB requires this fee to be disclosed in the Schumer Box on your credit card agreement.
What happens if I do not pay off the balance before the promotional period ends?
Once the promotional period ends, the remaining balance is subject to the card's regular go-to APR, which is often high (18 to 29%). Plan to pay off the full balance before the promotional period expires to maximize savings.
Does a balance transfer affect my credit score?
Applying for a new card triggers a hard inquiry, which may temporarily lower your score by a few points. However, if the transfer reduces your credit utilization on the original card and you make on-time payments, your score may improve over time.
Can I transfer balances between cards at the same bank?
Generally no. Most issuers do not allow balance transfers between two cards issued by the same bank or its affiliates. You must transfer to a card from a different issuer.
Official sources
- CFPB: What is a balance transfer?
- CFPB: Credit Cards.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.