Compare the cost of paying off your current credit card vs transferring the balance to a new card with an introductory 0% APR. Factor in the transfer fee and post-intro APR to determine total savings.
A balance transfer is a credit card industry promotion — move debt from one card (usually high-rate) to another card that charges 0% interest for a fixed introductory period, typically 12 to 21 months. In exchange, the new issuer charges a one-time transfer fee, usually 3% to 5% of the amount transferred.
The math is simple in principle: you're trading interest charges for a fee. The trade is worth it only if the interest you would have paid is larger than the fee, and only if you can pay the balance down meaningfully before the introductory rate expires and the post-intro APR — often 20%+ — kicks in on whatever remains.
This calculator runs both scenarios in parallel. It amortizes your existing balance at your current APR with your stated monthly payment, then simulates a transfer (balance plus fee) at the intro rate for the intro period and the post-intro rate after, with the same monthly payment. The difference is your true savings. It only works in your favor if you treat the intro period as a deadline, not a vacation.
Balance: $8,000 at 22% APR, paying $600/mo Current path: pays off in ~15 months, total paid ≈ $8,950 ($950 interest). Transfer (15 months, 0%, 3% fee, 20% post-intro): pays off completely in 14 months at 0%. Total paid: $240 fee + $8,000 = $8,240. Savings: $710. The transfer wins because the entire balance clears before the post-intro rate kicks in.
Balance: $8,000 at 22% APR, paying $300/mo Current path: pays off in 33 months, total interest ≈ $1,830. Transfer (15 months, 0%, 3% fee, 20% post-intro): $4,500 paid during intro at 0%. Remaining balance: $3,740. At 20% APR with $300/mo: 14 more months, ~$510 interest. Total cost: $240 fee + $8,000 + $510 = $8,750. Savings: $1,080. Still positive, but more than $500 in interest still gets paid post-intro.
Balance: $3,000 at 22% APR, paying $150/mo, transfer fee 5%, intro 12 months at 0%, post-intro 24% Current path: pays off in ~25 months, total interest ≈ $670. Transfer: $150 fee + $1,800 paid during intro. Remaining: $1,200 at 24% APR with $150/mo → ~9 months, $115 interest. Total: $150 + $3,000 + $115 = $3,265. Savings: $135. The 5% fee on a small balance ate most of the benefit, and the high post-intro rate finished the rest. Below ~$4,000 of debt and at high fees, the math often fails.
Use this calculator before applying for a balance transfer card, not after. Application is a hard credit pull and the card can be denied — knowing the math says it's worth it changes whether the inquiry is worth taking.
A balance transfer is most powerful when you have a clear payoff plan: a known amount of cash you can dedicate each month, an intro period long enough to retire most of the balance, and a fee that is much less than the interest you'd pay on the original card. It is most dangerous when used as a way to lower the monthly payment with no payoff intent — at the end of the intro period, you're back to a high APR with a similar balance and you've also paid the fee.
Adjacent tools: the credit-card-payoff calculator shows what an aggressive plan looks like on your existing card alone. The debt-consolidation calculator compares a personal loan instead of a balance transfer — for larger balances or longer time horizons, a fixed-rate personal loan is often the better instrument.
Find out how long it will take to pay off your credit card and how much interest you will pay.
Compare consolidating multiple debts into a single loan to see if you save money.
See how long it takes to pay off a credit card with minimum payments only.
Total Savings
$2,356
Transfer Fee
$240
Current Interest Cost
$3,083
Transfer Interest Cost
$487