Balance Transfer Calculator
Find out if a credit card balance transfer saves you money with our free calculator. Enter your current balance, APR, the transfer card's promotional rate, transfer fee, and your monthly payment to see interest saved, net savings, and payoff timelines.
A balance transfer moves existing credit card debt to a new card with a lower interest rate, often 0% APR for a promotional period of 12-21 months. The trade-off is a one-time transfer fee of typically 3-5% of the transferred balance. This calculator helps you determine whether the interest savings exceed the fee.
The key to making a balance transfer worthwhile is having a plan to pay off the balance during the promotional period. If you transfer $8,000 at 3% fee ($240 cost) and avoid paying 22% APR interest for 18 months, you could save over $2,000 in interest. However, if you only make minimum payments and still have a large balance when the promo expires (often reverting to 18-28% APR), you may not come out ahead.
To maximize savings: pay as much as possible during the 0% period, do not make new purchases on the transfer card (which may not qualify for the 0% rate), and set a payoff goal to clear the balance before the promotional rate expires. Most balance transfer cards require good to excellent credit (700+ FICO score) for the best offers.