Balance Transfer Calculator
See whether a balance transfer saves more in interest than its fee costs, with the net savings and the break-even month.
How it's calculated
A balance transfer moves debt from a high-rate card to a new card with a low promotional rate, often 0 percent for a set number of months. The catch is the transfer fee, usually 3 to 5 percent of the amount you move, charged up front. The transfer pays off when the interest it saves is more than that fee.
Take the default. You move a $6,000 balance from a card at 22 percent to a 0 percent offer for 18 months, paying $350 a month. The transfer fee at 3 percent is $180. Staying on the old card, you would pay about $1,236.21 in interest over those 18 months. On the new card at 0 percent you pay nothing in interest, so the transfer saves the full $1,236.21. Subtract the $180 fee and you are $1,056.21 ahead. Because the interest you avoid each month is larger than the one-time fee, you break even in the second month, and everything after that is savings.
The math almost always favors the transfer when the balance is large and the old rate is high, as long as you keep paying it down. The real risk is the rate after the promo ends. If a balance is still there when the intro period runs out, it starts accruing at the new card standard rate, which can be just as high as the old one. Set your payment so the balance clears within the window, and do not add new purchases to the card.
Assumptions
- Interest is compared on the current card versus the new card promo rate over the promo window, paying the same fixed amount each month.
- The transfer fee is charged once, up front. This does not model the rate after the promo ends, so aim to clear the balance within the window.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
Is a balance transfer worth the fee?
Usually yes when the balance is large, the old rate is high, and you will keep paying it down. The interest saved during a 0 percent promo typically dwarfs the 3 to 5 percent fee. Enter your numbers here to see the net savings and how quickly the saved interest covers the fee.
How does the transfer fee work?
It is a one-time charge, commonly 3 to 5 percent of the amount you move, added to your new balance at the transfer. On a $6,000 transfer a 3 percent fee is $180. It is the cost you weigh against the interest the low promo rate saves you.
What happens when the promo period ends?
Any balance left starts accruing at the card standard APR, which is often just as high as the card you left. That is why the goal is to clear the balance within the promo window. Divide your balance by the number of promo months to find the payment that gets you there.
Does a balance transfer hurt my credit?
Opening a new card adds a hard inquiry and lowers your average account age, which can dip your score briefly. But moving a balance can lower your utilization on the old card, which helps. For most people the effect is small and short-lived if they manage the new card well.