How It Works
Calculate interest on current card over promo period.
Interest Saved = Balance × (APR/12) × Promo Months | Net = Savings − Fee
- Subtract the one-time transfer fee.
- Break-even = time until fee is recovered.
Finance calculator
Balance Transfer Calculator
Calculate potential savings from transferring high-interest credit card debt to a 0% balance transfer card.
Enter Your Numbers
$
Amount to transfer to the new card.
%
Interest rate on your current card.
%
Typically 3–5% of transferred amount.
months
Length of 0% APR promotional period.
Net Savings
$1,574.25
Formula verified 9 September 2026
Interest You Avoid Paying
$1,724.25
Balance Transfer Fee
$150.00
Break-Even (months)
1.6
Estimate only — not financial advice; lender terms, fees, and taxes vary. Read the full disclaimer ↓
Interest Saved vs Transfer Fee
Add your numbers to see the visual breakdown.
Balance Transfer Summary
Interest avoided assumes the full balance sits at the old APR for the whole promo period — an upper bound on the benefit.
| Measure | Value |
|---|---|
| Balance transferred | $5,000 |
| Transfer fee | $150 |
| Monthly payment to clear before 0% ends | $286 |
| Interest avoided | $1,724 |
| Net savings | $1,574 |
Estimates only — not financial, tax, or professional advice.
100% private — every number you enter is calculated in your browser and never sent to our servers.
What it calculates: Net Savings, Interest You Avoid Paying, Balance Transfer Fee, Break-Even (months).
Updated 5 June 2026 · Transparent assumptions
Worked Example
$5,000 at 22.99%, 3% fee, 18-month 0% promo.
Transfer Fee
$150
Interest Avoided
$1,725
Net Savings
$1,575
Break-Even
1.6 months
You avoid $1,725 in interest for a $150 fee — net savings of $1,575 if you pay off the balance before the promo ends. To clear the $5,150 (balance plus fee) within the 18-month window, you would pay about $286 a month.
How Balance Transfers Work
The 0% intro period
A balance transfer moves debt from a high-rate card to a new card that charges no interest for a set introductory window, often somewhere between 12 and 21 months. During that window, every dollar you pay goes straight to the principal instead of being split with interest.
That pause is the whole point: it gives you a stretch of time to attack the balance without interest working against you. The benefit is largest when your old rate is high and you have a realistic plan to pay the balance down during the promo.
The transfer fee
Most transfers carry a one-time fee, commonly 3-5% of the amount moved, that is added to your new balance. On a $5,000 transfer, a 3% fee is $150. It is the price of admission for the 0% period.
Whether the fee is worth it comes down to a simple comparison: if the interest you avoid is larger than the fee, you come out ahead. The higher your current APR, the quicker the fee pays for itself.
Why you must clear the balance in time
The 0% rate is temporary. To get the full benefit, you generally need to pay the transferred balance down to zero before the promotional period ends. A useful target is the transferred amount plus the fee divided by the number of promo months.
Treating that figure as a fixed monthly payment keeps you on schedule. Paying only the minimum during the promo can leave a sizable balance behind right when interest switches back on.
What the rate becomes afterward
Once the intro window closes, any remaining balance starts accruing interest at the card’s standard APR. That ongoing rate can be similar to, or even higher than, the rate you left behind.
Because of this, a transfer is a tool for paying debt off, not a permanent low rate. If a balance is likely to linger past the promo, factor in what the regular APR will cost you afterward.
Effect on your credit
Opening a new card adds a hard inquiry and a fresh account, which can nudge your score down briefly. Over time the effect is often positive, because the added credit limit can lower your overall utilization, a major scoring factor.
Keeping the old card open after the transfer usually helps, since it preserves your available credit and the account’s history. Closing it can shrink your total limit and push utilization back up.
0% intro APR vs deferred interest
A genuine 0% intro APR charges no interest during the promo, and only new balances accrue once it ends. Deferred-interest offers, common with store financing, are different: interest quietly accrues the entire time and is billed retroactively if any balance remains at the deadline.
The two can look alike in an ad but behave very differently if you miss the payoff date. Read the terms so you know which kind of offer you are accepting before you commit.
When a transfer is and is not worth it
A transfer tends to pay off when your current rate is high, the fee is modest, and you can realistically clear the balance within the promo. In that case the interest you avoid comfortably exceeds the fee.
It is less compelling if you cannot pay the balance down in time, if new spending would refill the card, or if the fee swallows most of the savings. Remember the interest-avoided estimate is an upper bound that assumes the full balance sits untouched for the whole promo — actually paying it down reduces both the interest you would have paid and the benefit shown here.
Assumptions & Best Uses
- Balance transferred in full.
- No new purchases during promo period.
- Interest avoided assumes the full balance sits at the old APR for the whole promo period.
Limitations
- After promo ends, remaining balance accrues at the new card’s regular APR.
- The interest-avoided figure is an upper bound: it assumes the full balance stays put for the entire promo. Actually paying the balance down lowers both the interest you would have paid and the benefit shown here.
Frequently Asked Questions
Is a balance transfer worth it?
Usually yes, if the transfer fee is less than the interest you would otherwise pay, you can clear the balance before the promo period ends, and you avoid new purchases on the card. If you cannot pay it off in time, the leftover balance starts accruing interest at the regular rate.
How does the transfer fee work?
Most cards charge a one-time fee of about 3-5% of the amount moved, added to your new balance. On a $5,000 transfer, a 3% fee is $150. You earn back that fee through the interest you avoid, so the larger your old rate, the faster it pays for itself.
What happens when the 0% promo period ends?
Any balance still owed when the promotion expires begins accruing interest at the card’s standard APR, which can be similar to or higher than your old rate. The 0% offer applies only during the intro window, so the goal is to finish paying before it closes.
How much should I pay each month to clear it in time?
Divide the transferred balance plus the fee by the number of promo months. For a $5,000 transfer with a $150 fee over 18 months, that is about $286 a month. Paying at least that much keeps you on track to owe nothing when the 0% period ends.
Does a balance transfer hurt my credit score?
Applying adds a hard inquiry and a new account, which can dip your score briefly. Over time it can help: moving debt to a new card raises your total available credit and can lower your overall utilization, especially if you keep the old card open.
What is the difference between 0% APR and deferred interest?
A true 0% intro APR charges no interest during the promo, and only future balances accrue afterward. Deferred interest, common on store financing, quietly accrues interest the whole time and bills all of it retroactively if any balance remains at the end. Read the offer carefully to know which one you have.
Can I transfer more than one card to a new balance transfer card?
Often yes, up to the new card’s credit limit. Combining several high-rate balances onto one 0% card can simplify payments and pause interest on all of them, but each transferred amount is still subject to the transfer fee.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
- What does APR mean? — comparing the old rate with the balance-transfer promo APRConsumer Financial Protection Bureau · verified 2026-06-04
- How does my credit card company calculate interest? — what a transfer fee buys you against accruing interestConsumer Financial Protection Bureau · verified 2026-06-04
Budget & credit disclaimer
These are planning estimates based on the numbers you enter. Interest rates, fees, and lender terms vary and change over time. This is educational information, not financial or credit advice.
How we calculate · Found an error? email us
What's changed (2 updates)
Published 9 September 2026
- Published the calculator with its formula, worked example, assumptions, limitations and FAQs, and added an automated formula test suite covering it.
- Documented and tested the no-paydown simplification behind the avoided-interest figure, and confirmed the break-even point depends only on the fee percentage and the rate, not on the balance size.