Balance Transfer Calculator

A balance transfer moves debt from a high-interest credit card to a new card offering a low or 0% introductory rate for a set period — often 12 to 21 months. Done well, it pauses interest charges so your whole payment attacks the principal, clearing the debt faster and cheaper. Done carelessly, fees and a high post-promo rate can undo the benefit.

The headline appeal is the 0% period. On a normal card charging 20%+ APR, a large chunk of every payment goes to interest. Transfer that balance to a 0% card and, for the promotional months, every dollar reduces what you owe. For someone carrying a few thousand dollars, the interest saved can run into the hundreds.

The catch is the balance transfer fee. Most cards charge a one-time fee of around 3% to 5% of the amount transferred — so moving $5,000 might cost $150 to $250 upfront, added to your balance. The transfer is worth it only if the interest you'd otherwise pay exceeds this fee, which is exactly the comparison this calculator makes.

Timing is everything. The 0% rate is temporary; when it ends, the standard APR — often as high as your original card — kicks in on any remaining balance. The smart strategy is to divide your balance by the number of promo months and pay at least that much each month, clearing it entirely before the rate resets. Paying it off within the window is what turns a balance transfer into real savings.

A few cautions: new purchases on the card may not get the 0% rate and can accrue interest immediately, applying for the card involves a credit check, and missing a payment can void the promotional rate. Closing the old card can also affect your credit score. Used deliberately — transfer, stop spending, and pay it off before the promo ends — a balance transfer is one of the most effective tools for escaping expensive credit card debt. This calculator shows whether the numbers work for your situation.