Balance Transfer Savings Calculator
See whether a 0% balance transfer saves money: weighs the transfer fee against interest avoided during the intro period and after. Runs in your browser.
Balance transfer analysis
- Transfer fee
- $180 (3%)
- Interest if you stay
- $1,739
- Interest after transfer
- $71
- Transfer total cost (fee + interest)
- $251
Transferring saves $1,488
Pay aggressively during the 0% window — that's where the savings come from. Any balance left when the intro ends accrues at the post-intro APR. The upfront transfer fee (often 3–5%) is included. Informational, not financial advice.
About this tool
A 0% balance transfer can wipe out interest for a year or more, but it carries an upfront fee (typically 3–5% of the balance), so it only wins if the interest you avoid exceeds that fee. This calculator settles it. It simulates two scenarios with your fixed monthly payment: staying on your current card at its APR, versus transferring — paying the fee, enjoying 0% for the intro period, then the post-intro APR on whatever remains. It reports the fee, the interest each way, the transfer's total cost, and the net savings. The lesson it reinforces is that the payoff comes from paying down aggressively during the 0% window: clear the balance before the intro ends and you avoid nearly all interest; leave a lot on the card and the post-intro rate (plus the fee you already paid) can erase the benefit. Use it to decide whether a transfer is worth it and to set a payment that clears the balance in time. It is informational, not financial advice. Everything runs in your browser.
How to use it
- Enter the balance, your current APR, and the monthly payment you'll make.
- Enter the transfer fee %, the 0% intro length, and the APR after intro.
- Compare interest if you stay vs the transfer's total cost.
- Aim to pay the balance off within the 0% window for maximum savings.
Frequently asked questions
- How does a balance transfer save money?
- It moves debt to a card charging 0% (or a low rate) for an introductory period, so payments go to principal instead of interest. The savings are the interest you would have paid on the old card, minus the transfer fee.
- What is the transfer fee?
- A one-time charge, usually 3–5% of the transferred balance, added to the new card. On a $6,000 transfer at 3% that is $180. The interest you avoid must beat this fee for the transfer to pay off — which the calculator checks.
- What happens when the 0% period ends?
- Any remaining balance starts accruing at the card's regular (post-intro) APR, which can be high. That is why paying the balance down to zero before the intro ends is the goal; leftover balance plus the fee can wipe out the benefit.
- Does a balance transfer hurt my credit?
- Short term, the new-card application causes a small hard inquiry, and a new account lowers average account age. But lowering your utilization by paying down the balance can help over time. Avoid closing the old card immediately, which would raise utilization.
- When is a balance transfer NOT worth it?
- If you cannot pay much down during the intro period (so most balance survives to the high post-intro APR), if the fee exceeds the interest saved, or if a new transfer just enables more spending. The calculator shows when the net is negative.
- Is this financial advice?
- No. It is an informational comparison. Read the card's terms and consider a credit counselor for serious debt.