Balance Transfer Savings Calculator
See how much you save by moving a credit card balance to a 0% intro APR card
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Balance Transfer Calculator
Is a Balance Transfer Worth It?
Assumes you make the same monthly payment on both the current card and the BT card. If you do not pay off the balance within the intro period, the remaining balance accrues interest at the post-intro APR.
Key Takeaways
- Transferring a $5,000 balance from a 20.99% APR card to a 0% intro card for 15 months saves approximately $1,034 — even after the $150 transfer fee (3%).
- The critical question is whether you can pay off the balance during the intro period. At $250/month, you need 20 months to pay off $5,000, which exceeds a 15-month intro window. The calculator warns you and shows the remaining balance that will accrue interest at the post-intro APR.
- The break-even month shows when your cumulative interest savings exceed the transfer fee. On a 0% intro card, break-even is typically month 1 — every payment goes entirely to principal from day one.
- The payment timeline visualizes the difference: the current card bar is all gold (interest-bearing), while the BT card bar has a green intro section (0%) followed by gold (post-intro APR) if any balance remains.
- A balance transfer only saves money if the interest you avoid during the intro period exceeds the transfer fee. On low balances ($1,000 or less), the fee may wipe out most of the savings.
How to Use This Calculator
This calculator compares the total cost of keeping a credit card balance on your current card versus transferring it to a balance transfer card with an introductory 0% APR period. It accounts for the transfer fee, the intro period, and what happens to any remaining balance after the intro expires.
Step 1 — Enter your current card details. Balance, current APR, and the monthly payment you plan to make. The default $5,000 at 20.99% with a $250/month payment represents a typical scenario.
Step 2 — Enter the balance transfer card details. Set the intro APR (usually 0%), the intro period (typically 12–21 months), the post-intro APR (what the card charges after the intro expires), and the transfer fee (typically 3%–5% of the balance). The fee is added to the transferred balance.
Step 3 — Read the comparison. The VS panel shows total interest on the current card versus total interest plus fee on the BT card. The verdict shows the savings (or loss), the break-even month, and a warning if the balance will not be paid off within the intro window.
Step 4 — Adjust the payment to optimize. Try increasing your monthly payment until the warning disappears — that is the payment needed to clear the balance during the intro period and capture the maximum savings. Divide the total transferred balance (including the fee) by the intro months to find the minimum payment needed.
Understanding the Results
The VS comparison shows two numbers: total interest on the current card if you keep paying there, versus total interest plus transfer fee on the BT card. The BT card’s cost is almost entirely the transfer fee during the intro period (since the intro APR is 0%), plus any interest accrued on a remaining balance after the intro expires.
The warning box appears when your monthly payment is not high enough to pay off the balance within the intro period. This is the most common trap with balance transfers — you move the balance to save on interest, but if you do not pay it off in time, the post-intro APR (often 22%–28%) kicks in and erases much of the savings. The warning shows the exact remaining balance and the rate it will face.
The payment timeline at the bottom provides the clearest visual. The current card bar is entirely gold (the full balance accrues interest every month). The BT card bar starts with a green segment (the intro period at 0%) followed by gold (post-intro APR) if a balance remains. When the BT card shows mostly green, the transfer is working as intended.
Balance Transfer Cards: What to Look For
| Feature | Good | Average | Poor |
|---|---|---|---|
| Intro Period | 18–21 months | 12–15 months | 6–9 months |
| Transfer Fee | 0%–2% | 3% | 4%–5% |
| Post-Intro APR | 16%–20% | 20%–24% | 24%–29% |
| Credit Required | Good to Excellent (670+ FICO) — most 0% BT cards require strong credit | ||
Frequently Asked Questions
How does a balance transfer work?
You apply for a new credit card that offers a 0% introductory APR on balance transfers. Once approved, the new card issuer pays off your old card. Your balance moves to the new card where it accrues zero interest during the intro period (typically 12–21 months). You pay a one-time transfer fee of 3%–5% of the transferred amount.
Is a balance transfer worth the fee?
Almost always yes, if your current APR is above 15%. On a $5,000 balance at 21% APR, you pay about $87/month in interest. A 3% transfer fee costs $150 — less than two months of interest savings. The calculator above shows the exact comparison. The fee stops being worthwhile only on small balances (under $1,000) or short intro periods (6 months or less).
What happens if I do not pay off the balance during the intro period?
The remaining balance begins accruing interest at the post-intro APR, which is typically 22%–28%. Some cards also apply retroactive interest on the entire original transfer amount (check for “deferred interest” language). Most balance transfer cards do not have retroactive interest, but it is critical to verify the card terms.
Can I transfer a balance from one card to the same issuer?
Generally no. Most issuers do not allow balance transfers between their own cards. You must transfer to a card from a different bank or issuer. For example, you cannot transfer from a Chase Sapphire to a Chase Slate — but you can transfer from a Chase Sapphire to a Citi Simplicity.
Does a balance transfer hurt my credit score?
Opening a new card triggers a hard inquiry (5–10 point temporary dip) and lowers your average account age. However, the new card increases your total available credit, which lowers your utilization ratio — often resulting in a net score improvement within 1–2 months. See our Credit Score Simulator to model the impact.
Balance transfer vs personal loan: which is better?
Balance transfers are better when you can pay off the full balance within the intro period (zero interest). Personal loans are better when the balance is too large to pay off in 15–21 months, because the fixed rate (typically 8%–15%) is lower than the post-intro APR (22%+). Use the Debt Consolidation Calculator to compare the two approaches directly.
References & Further Reading
- CFPB — What Is a Balance Transfer?
- Federal Reserve G.19 — Consumer Credit
- FTC — Choosing a Credit Card
Keep Reading
- Best Credit Cards — Compare balance transfer offers
- Credit Card Payoff Calculator — Plan your payoff without transferring
- Debt Consolidation Calculator — Compare a personal loan alternative
- Personal Loan vs Credit Card — When to switch
- All PrimeRates Calculators