Balance Transfer Calculator
Determine whether a balance transfer credit card saves you money. Enter your current balance, current APR, the 0% introductory period length (typically 12 to 21 months), the balance transfer fee (usually 3 to 5 percent), the APR after the intro period ends, and your planned monthly payment. The calculator runs two scenarios in parallel: keeping your balance on the current card and moving it to a balance transfer card, accounting for the transfer fee and interest charged after the intro period. During the 0% promotional period, every dollar you pay reduces your balance with zero interest, letting you pay off debt faster. The break-even analysis shows whether the interest saved during the 0% period exceeds the transfer fee. This calculator also shows the minimum payment required to clear your balance completely by the end of the 0% period, so you can assess whether an aggressive payoff goal fits your budget. Note that balance transfer offers typically apply only to the transferred balance, not to new purchases on the same card, which accrue interest immediately at the standard purchase APR.
Enter your balance, current APR, and transfer offer details to see whether a balance transfer saves you money.
How the balance transfer calculation works
The calculator runs two parallel scenarios using standard credit card amortisation, then computes the net saving.
Without the transfer
Your current balance is repaid at the existing APR with the planned monthly payment. Each month, interest accrues on the outstanding balance (monthly rate = APR / 12), then the payment is applied. The process repeats until the balance reaches zero. Total interest is the sum of all interest charged across every month.
With the transfer
The balance transfer fee is added to the original balance. During the intro period, no interest accrues: the monthly payment reduces the balance by exactly the payment amount. Any balance remaining when the intro period ends begins accruing interest at the post-intro APR, and amortisation continues at that rate until payoff. Total cost equals the transfer fee plus any interest charged after the intro period expires.
Monthly rate = APR / 100 / 12
Each month (no promo): interest += balance x monthly_rate; balance -= (payment - interest_this_month)
During 0% intro: balance -= payment (no interest)
Net savings = (interest without transfer) - (transfer fee + interest after intro)
When a balance transfer makes sense
A balance transfer is most effective when the interest saved during the 0% period clearly exceeds the transfer fee. This typically requires a high existing APR, a meaningful balance, and a long enough intro period to pay down most of the debt. The break-even is generally reached within the first few months of the promo period.
If your planned monthly payment will not fully clear the balance by the end of the intro period, pay close attention to the post-intro APR. A low ongoing rate reduces the risk; a high rate means any remaining balance will start accruing significant interest. The minimum payment to clear the balance within the intro period is shown in the results so you can plan an aggressive payoff schedule if needed.
The CFPB recommends reviewing the full card terms before applying, including whether the 0% rate applies to new purchases or only to the transferred balance. In many cases, new purchases on the same card accrue interest immediately at the standard purchase APR.
Balance transfer: frequently asked questions
What is a balance transfer?
A balance transfer moves existing credit card debt from one or more cards to a new card, typically to take advantage of a promotional 0% annual percentage rate (APR) for a set introductory period. During the 0% period, every dollar you pay reduces your balance with no interest charged, letting you pay off debt faster than on a high-interest card. The CFPB has a guide at consumerfinance.gov.
What is a typical balance transfer fee?
Most issuers charge a balance transfer fee of 3% to 5% of the transferred amount, with a minimum dollar amount (commonly $5 to $10). A 3% fee on an $8,500 transfer costs $255. Some cards offer a $0 fee for a limited window after account opening. The fee is usually added to your balance, not charged separately, so your starting balance on the new card will be slightly higher than the amount transferred.
Does a balance transfer hurt your credit score?
Applying for a new credit card results in a hard inquiry, which can temporarily lower your credit score by a few points. Opening a new account also reduces your average account age. However, if the transfer lowers your credit utilisation ratio (balance divided by total credit limit), that can improve your score over time. Keeping your old card open (with a zero or low balance) helps maintain your total available credit and account age.
What happens when the 0% period ends?
Any remaining balance after the introductory period reverts to the card's ongoing APR, which is typically in the range of 17% to 29.99% depending on your creditworthiness and the card. If you have not paid off the balance by then, interest begins accruing at the regular rate. This calculator shows how much will remain at the end of the intro period based on your planned monthly payment, so you can plan accordingly.
Should I close my old card after a balance transfer?
Generally, financial guidance from the CFPB suggests keeping the old card open with a zero balance rather than closing it. Closing a card reduces your total available credit, which can increase your credit utilisation ratio and lower your score. It also shortens your credit history. The exception might be if keeping the card open leads to new spending you cannot afford to repay.
Official sources
- Balance transfer guidance: CFPB, What do I need to know before getting a balance transfer credit card?
- Credit card payoff tools: CFPB, Credit Cards.
Reviewed by the CalculatorHub team, edited by James Graham, 13 June 2026. See our methodology. General information only, not financial advice.