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Balance Transfer Calculator
Use this free balance transfer calculator to find out whether moving your credit card balance to a new card will actually save you money. Enter your current balance and APR, the transfer fee, the new card's promo APR and promo length, and your monthly payment, and the calculator will simulate the payoff month by month, with and without the transfer, and show your months to pay off, total interest in each case, the fee cost, and your net saving.
The calculator simulates month by month: interest accrues on the balance at the APR in effect that month, then your payment is applied. The transfer fee is added to the new balance.
How it works
A balance transfer moves what you owe from a high-interest card to a new card that charges little or no interest for a promo period, usually 12 to 21 months. The catch is the transfer fee, typically 3 to 5 percent of the amount moved, which is added to your new balance. Whether the move saves money depends on the size of the fee, the length of the promo, the rate after the promo, and how much you pay each month.
This calculator simulates the payoff month by month, which is more accurate than a simple estimate. Each month, interest is added to the balance at the APR in effect that month divided by 12, and then your monthly payment is applied. Without a transfer, the balance always accrues interest at your current APR. With a transfer, the balance starts at your old balance plus the fee, accrues interest at the promo APR during the promo months, and then switches to the after-promo APR for any months that remain. The simulation runs until the balance reaches zero, up to a cap of 600 months, so it also catches the case where the monthly payment is too small to ever pay the card off.
The outputs tell the whole story. Months to pay off shows how much sooner you become debt-free with the transfer. Total interest with the transfer versus without shows the raw saving, and the fee cost shows what the transfer itself charged you. Net saving is the number that matters: interest without the transfer, minus interest with the transfer, minus the fee. If the net saving is positive, the transfer pays. If it is negative, staying put is cheaper, which can happen when the promo is short, the payment is small, and a large balance is still left when the higher after-promo rate kicks in.
The monthly payment is the lever you control. Paying only the minimum stretches the payoff out and leaves a balance at the end of the promo, when the regular APR starts charging interest again. A good rule is to pay at least the transferred balance divided by the promo months: on a 5,150 dollar transferred balance with a 12-month promo, that is about 430 dollars a month, which clears the debt before the promo ends. The calculator lets you test different payments to see how much each extra dollar per month saves in interest and time.
Two warnings are worth keeping in mind. First, new purchases on the transfer card often do not get the promo rate, and some cards apply your payments to the transferred balance first, leaving new purchases to accrue interest. Second, a late payment can cancel the promo rate entirely on some cards. Read the card terms before you transfer, and keep paying on time every month.
Worked example
A cardholder owes $5,000 at 22% APR and is offered a card with 0% for 12 months, a 3% transfer fee, 19.99% APR after the promo, and pays $300 a month.
Step 1: Without the transfer — simulating month by month at 22% APR with $300 payments pays the balance off in 21 months with $1,021.60 of total interest.
Step 2: The transfer fee — 3% of $5,000 = $150.00, so the new balance starts at $5,150.00.
Step 3: With the transfer — the first 12 months charge 0% interest, and the remaining balance then accrues at 19.99%. The balance is cleared in 18 months with only $84.87 of total interest.
Step 4: Interest saved — $1,021.60 − $84.87 = $936.73.
Step 5: Net saving — $936.73 − $150.00 fee = $786.73.
The transfer saves $786.73 and clears the debt 3 months sooner. If the cardholder paid only $200 a month instead, the balance would still be there when the promo ended, and the saving would shrink sharply, which is why the payment amount matters as much as the promo rate.
FAQ
Is a balance transfer worth it?
A balance transfer is worth it when the interest you save is larger than the transfer fee and you can pay the balance off before the low-rate promo period ends. For example, moving a 5,000 dollar balance at 22 percent to a 0 percent card for 12 months with a 3 percent fee can save about 787 dollars. If you cannot pay it off in time, the rate after the promo may erase the saving, so check the after-promo APR before you transfer.
What is a balance transfer fee?
A balance transfer fee is a one-time charge for moving a balance to a new card, usually 3 to 5 percent of the amount transferred. On a 5,000 dollar transfer, a 3 percent fee costs 150 dollars, and that fee is added to your new balance. Some cards offer no-fee transfers, but they usually have a shorter 0 percent period or a higher rate after the promo.
What happens when the 0 percent promo period ends?
When the promo period ends, any balance left on the card starts charging interest at the card's regular APR, which is often 18 to 28 percent. That is why the calculator asks for the APR after the promo: the months after the promo still matter. The best plan is to divide your transferred balance by the promo months and pay at least that much each month, so the balance is gone before the promo ends.
Does a balance transfer hurt my credit score?
A balance transfer can cause a small, short-term dip in your credit score because the new card application triggers a hard inquiry and opening a new account lowers your average account age. Over time it can help your score, because the new card raises your total available credit and lowers your credit utilization, as long as you pay on time and do not run up new balances.
How much should I pay each month after a balance transfer?
Pay at least the transferred balance divided by the number of promo months, so the balance is cleared before the 0 percent period ends. On a 5,150 dollar transferred balance with a 12-month promo, that is about 430 dollars a month. Paying only the minimum will leave a balance when the promo ends, and that balance will then be charged interest at the regular APR.