Balance Transfer Savings Calculator
See how much interest a 0% balance transfer saves versus staying put — after the transfer fee — over the promo period.
How it works
Fee = balance × fee% · Each month: interest = balance × APR ÷ 12, then balance += interest − payment · Savings = interest if you stay − (fee + interest under promo)
A balance transfer swaps a high APR for a low promotional rate, but the upfront transfer fee — usually 3–5% — has to be earned back through interest saved. This tool simulates your balance month by month at both rates over the promo window, so the comparison reflects your actual payment. A transfer wins when the interest you avoid is bigger than the fee, which favors large balances at high APRs paid down aggressively.
Worked example
On a $5,000 balance at 22% APR paying $300/month, staying put costs roughly $760 in interest over 18 months. A 0% transfer with a 3% ($150) fee costs only that $150, saving about $610.
Frequently asked questions
When is a balance transfer not worth it?
When the fee exceeds the interest you would save — typically small balances, low APRs, or when you would clear the debt quickly anyway. This calculator flags that case with a negative savings figure.
What happens when the promo ends?
Any remaining balance starts accruing at the card’s regular (often high) APR. The goal is to pay the balance to zero before the promo expires, so aim your monthly payment to clear it within the window.
Does a transfer hurt my credit?
The new card adds a hard inquiry and a new account, which can dip your score briefly, but lowering your utilization by spreading the balance can help over time. Avoid closing the old card immediately, as that can raise utilization.
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Educational estimate, not financial advice. Returns are assumed constant and are not guaranteed.