How a balance transfer works
A balance transfer moves debt from one credit card to another, usually to a card offering a low or 0% introductory APR for a set number of months. You typically pay a one-time transfer fee (often 3% to 5% of the amount moved), which is added to the new balance. When the intro period ends, any remaining balance starts accruing interest at the card's regular APR.
With average credit card rates above 20% for accounts that pay interest, according to Federal Reserve data, a 0% period can save a lot, but only if the fee and the post-promo rate don't eat the savings.
How the calculator works
It compares two scenarios using the same monthly payment, so the comparison is fair:
- Keep your current card: interest accrues each month at your current APR until the balance is paid off.
- Transfer: the fee is added to your balance, interest accrues at the intro APR during the promo, then at the regular APR on whatever is left.
Monthly interest = balance × APR ÷ 12 (intro APR during the promo, regular APR after)
Payment to clear in time = new balance ÷ intro months (at 0%)
Worked example
You owe $6,000 at 22.99% APR and can pay $250 a month. Staying put, you'd be debt-free in about 33 months and pay about $2,110 in interest.
Now take an offer with a 3% fee ($180), 0% for 18 months, then 24.99%. Paying the same $250, you'd still owe about $1,680 when the promo ends, which costs about $150 of interest before it's gone. Total cost: about $330, saving roughly $1,780, and you'd be debt-free in 26 months.
Raise the payment to about $344 a month and you'd clear the whole $6,180 inside the 0% window, paying nothing but the fee.
Getting the most from a balance transfer
- Divide by the intro months. The "payment to clear in time" figure is your target. Set up autopay for at least that amount.
- Don't spend on the new card. New purchases may be charged interest immediately, and the CFPB has warned consumers that promotional offers can cost more than expected.
- Pay on time, every time. A late payment can end the intro rate early on some cards.
- Have several cards? If so, our debt snowball vs avalanche calculator helps decide which balances to move or pay off first.
- Read the offer terms. Check the fee, the length of the intro period, when it starts, and the regular APR. Enter those exact numbers above.
Frequently asked questions
Is a balance transfer worth the fee?
Usually, if your current APR is high and you can pay off most of the balance during the intro period. A 3% fee on $6,000 is $180, while a year of interest at 22% on the same balance is well over $1,000. It's less attractive if you can only make small payments and a large balance rolls over to the card's regular APR.
How much is a typical balance transfer fee?
Balance transfer fees are commonly 3% to 5% of the amount transferred, often with a minimum of a few dollars. Some cards charge a lower fee for transfers made in the first weeks after opening. The fee is added to your new balance.
What happens when the 0% period ends?
Any balance left over starts accruing interest at the card's regular (go-to) APR. The calculator shows how much would be left at the end of the promo, and what payment would clear the balance in time.
Can I use the new card for purchases?
It's usually best not to. On many cards, new purchases are charged interest right away unless you pay the full statement balance, including the transferred amount, by the due date. The CFPB has warned that these charges can make a transfer more expensive than consumers expect.
Does a balance transfer hurt my credit score?
Applying for a new card triggers a hard inquiry and lowers your average account age, which can cause a small, temporary dip. Over time, paying the balance down lowers your credit utilization, which tends to help your score.
Sources
- CFPB Warns Credit Card Companies Against Deceptively Marketing Promotional Offers, Consumer Financial Protection Bureau
- Consumer Credit – G.19 (credit card interest rates), Federal Reserve Board
This calculator is for educational purposes and gives estimates based on the numbers you enter. It is not financial, tax or legal advice. Last reviewed October 2026.