Balance Transfer Calculator

How the balance transfer calculator works

A balance transfer moves debt from one credit card to another, usually to get a low or 0 percent introductory APR for a set number of months. The catch is the transfer fee, charged as a percentage of the amount moved, and the higher rate that applies once the promotion ends. This calculator runs your payoff month by month under both scenarios so you can see whether the savings outweigh the fee.

Enter the balance, your current APR, the promotional APR and its length, the APR that applies afterward, the transfer fee and what you plan to pay each month. The same monthly payment is used in both scenarios, which keeps the comparison fair.

The formulas

With the transfer, the fee is added to the starting balance, so it is paid off along with everything else and is already counted in the “total paid with transfer” figure. Break-even is the first month in which the interest you have avoided so far is at least as large as the fee.

Example: Moving a balance of $8,000 from a card at 24.99 percent to a 0 percent offer for 18 months with a 3 percent fee costs a fee of $240.00. Paying $400 a month, you pay $10,455.25 in total without the transfer over 27 months, versus $8,281.17 with it over 21 months. The net saving is $2,174.07, the break-even point is Month 2, and the balance when the promo ends is $1,040.00. These are illustrative figures, not an offer.

Try changing the monthly payment first. A larger payment shortens both scenarios, and a payment large enough to clear the balance inside the promo period usually gives the biggest saving because the after-promo APR never applies.

Things to check before you transfer

• The CFPB notes that a card company is permitted to charge a balance transfer fee even on a zero percent offer, and that the introductory rate usually lasts only a limited time.
• New purchases on the same card may not get a grace period, so they can accrue interest until the whole balance, including the transferred amount, is paid. Read the card terms.
• If you pay late by more than 60 days, the issuer can raise the rate on all balances, according to the Consumer Financial Protection Bureau.
• Approval, credit limits and the actual fee depend on the issuer. The CFPB also explains balance transfer fees.

The calculator uses a simple monthly interest model and ignores annual fees, minimum payment rules and your credit score. If your payment is too low to cover interest, it reports that the balance is never paid off. This is general information, not financial advice. For a payoff schedule on a single card, use our credit card payoff calculator.

Frequently asked questions

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