Balance Transfer Calculator

Our balance transfer calculator shows how much you can save by moving existing credit card debt to a lower-interest card. By comparing your current card to a new offer, it estimates your interest savings, payoff timeline, and total cost so you can build a repayment plan that fits your budget.

How to use the balance transfer calculator

Here are the steps to take to use the balance transfer calculator:

Enter your current credit card information

Input the following details for your current credit card:

• Current balance: Your card’s current balance is the starting point for calculations
• Current APR: This is used to calculate monthly interest costs and total interest costs for the card
• Current annual fee: An annual fee will increase your balance each year, so it’s necessary to include it for accurate calculations
• Monthly payment amount: This is needed to determine how much you’ll pay in interest and later to calculate the potential savings of a balance transfer 

Add your balance transfer card details

Input the details for the balance transfer card you’re considering:

• Transfer amount: This is the starting point for calculating the potential savings of a balance transfer
• Introductory APR: This is used to calculate interest charges during the introductory period
• Introductory APR period: The timeframe of the promotional offer period matters and impacts the results
• Standard purchase APR: Once the promotional period ends, the card’s standard APR applies, so this is needed for accurate calculations
• Annual fee: If the balance transfer card has an annual fee, it will increase your balance each year, so it’s necessary to include it for accurate calculations 

Include the balance transfer fee

Enter the card’s balance transfer fee percentage and minimum fee amount to ensure an accurate estimate. Card issuers typically charge a balance transfer fee of 3% to 5% of the transferred amount, with a minimum fee of $5 or $10.

Here’s an example scenario:

• Enter $250 as the monthly payment amount
• Enter $6,000 for the current card’s balance 
• Enter 22% APR as the interest rate (APR) 
• Enter the annual fee if there is one
• Enter $6,000 for the transfer amount
• Enter 22% APR as the interest rate (APR) 
• Enter 18 months for the introductory period
• Enter 0% for the introductory rate
• For the balance transfer fee section, enter 3% for the percentage of balance 

How to read the payoff comparison chart

The payoff comparison chart shows both scenarios side by side, so you can compare how quickly the balance drops on each card over time. Progress on reducing your current card balance is typically slower because a portion of each payment goes toward interest, and only some goes toward the principal. 

A balance transfer card’s balance typically drops faster, especially during a 0% APR promotional period, since no interest charges will apply during that period, meaning your monthly payments will go toward reducing the principal balance. This changes your payoff timeline, allowing you to pay off your debt faster. 

What affects your balance transfer savings?

Here are the factors that have the greatest impact on the calculations and why they matter:

Your current APR

A higher APR will generally increase the potential savings. By transferring your debt to a 0% APR credit card, you can save a significant amount of money on interest during the no-interest promotional period. 

Your monthly payment

The more you can afford to put toward repayment, the more you can save on interest, and the faster you can pay off your debt.

Introductory APR period

A longer introductory APR gives you more time to pay off the balance before the introductory APR period ends.

Balance transfer fees

A balance transfer fee reduces your overall savings. The transfer is worth it when the interest you save during the promotional period exceeds the fee. This is called the break-even point. The calculator can help you see whether you’ll get there. 

Annual fees

Not every balance transfer card has an annual fee, but if it does, it can reduce interest savings. 

Let’s imagine a balance transfer will save you $500 in interest. But the new card has a $95 annual fee. That fee will reduce your savings to $405. This assumes you pay the balance off within one year. If it takes 15 months, you’ll be charged an additional $95 during the second year, reducing your interest savings to $310.

When a balance transfer is worth considering

Here are a few scenarios where a balance transfer is likely to offer savings:

You have a high-interest credit card balance

When your card carries a high APR, a portion of each payment goes toward interest rather than your balance, which makes it challenging to make a significant dent in repaying your debt. When you transfer the balance to a 0% intro APR card, you’ll benefit from zero interest for a set period, and your payments will go fully toward reducing the principal, which can allow you to repay your debt faster. 

You can repay the balance during the introductory APR period

By outlining a debt repayment plan that allows you to repay the balance before the introductory APR period ends, you’ll maximize your savings and all of your monthly payments will go towards reducing the principal. 

Your savings exceed the balance transfer fee

If the interest you save during the introductory APR period exceeds the one-time balance transfer fee you’re charged, it’s worth considering a balance transfer.

You qualify for a competitive balance transfer offer

A balance transfer is worth it when you qualify for a competitive promotional 0% APR offer. The longer the intro, the better. This will give you more time to chip away at repaying your balance before the card’s standard APR kicks in. 

Common mistakes when using a balance transfer calculator

These mistakes and misconceptions can affect the accuracy of the results you receive:

Forgetting to include the balance transfer fee

If you forget to include the balance transfer fee, your starting balance amount will be off, and the estimated savings will be inaccurate. You need to include the fee to ensure your payments are enough to pay off the entire balance before the promotional period ends. 

Assuming the introductory APR lasts indefinitely

A balance transfer card’s introductory 0% APR is valid only for a set timeframe, which is outlined in the offer terms. Once the zero-interest period ends, the card’s standard APR applies. To maximize your interest savings, it’s best to pay off the balance before the introductory period ends.

Entering an unrealistic monthly payment

Entering an unrealistic payment amount will throw off your results. For the most realistic results, enter a payment amount that you can afford to make regularly.

Ignoring annual fees

Annual fees are added to your card balance each year. Ignoring annual fees can result in incorrect interest savings calculations. 

Not reviewing the standard APR after the promotional period

It’s important to review the offer terms for a balance transfer card, including the standard APR, so you know what to expect after the promotional period ends. 

How we calculate your results

Here’s an overview of the methodology used to generate the calculator results:

Interest calculations

For the first scenario, interest is estimated based on the standard APR you entered for your current card. For the balance transfer scenario, interest is estimated using the introductory APR and standard APR you entered for the balance transfer card.

Introductory APR assumptions

The length of the introductory APR period is also factored into the calculations. The introductory APR you entered is applied for a set number of months based on the length of the offer period that you entered. For example, if the intro APR is 0% for 18 months, no interest accrues on your balance during that period, and the calculation reflects that.

Balance transfer fee calculations

The calculator adds the one-time balance transfer fee to the current balance amount that you entered. 

Annual fee assumptions

An annual fee is an additional charge added to your card balance each year, so it impacts your total repayment cost and reduces your balance transfer savings.

Why your actual results may differ

Here are some reasons why your results may differ from the calculations shown:

• Additional purchases: The promotional rate usually only applies to the transfer balance. When you make new purchases on the card, the standard APR typically kicks in. This means you will owe more. 
• Variable APRs: Credit cards typically have variable APRs, meaning they can change with market fluctuations. Once the standard APR kicks in, it could increase, which impacts your unpaid balance. 
• Issuer-specific terms: Bank-specific terms that apply to a balance transfer card, which could impact your results. For example, some card issuers set maximum limits for balance transfers, regardless of your credit limit. Some card issuers cap balance transfer amounts made during a certain timeframe. Review offer terms carefully so you know what to expect.