How the Balance Transfer Calculator Works
This calculator compares the total cost of keeping your balance on your current credit card versus transferring it to a new card with an introductory APR offer. It accounts for the balance transfer fee, interest during the intro period, and interest at the regular rate after the intro period ends.
When a Balance Transfer Makes Sense
- Your current APR is significantly higher than the intro offer rate
- You can pay off the balance during the intro period (ideal scenario)
- The transfer fee is reasonable (typically 3-5%)
- The interest savings exceed the transfer fee
Balance Transfer Tips
- Aim to pay off the full balance before the intro period ends
- Set up auto-payments to avoid missing payments (which can void the intro rate)
- Do not make new purchases on the transfer card (they may accrue interest immediately)
- Read the fine print — some cards calculate the fee on the transfer amount before it posts
- Factor in the transfer fee when calculating true savings
Frequently Asked Questions
Is a balance transfer worth it?
A balance transfer is worth it when the interest savings exceed the transfer fee. This calculator shows you the exact comparison. Generally, it is worth it if your current APR is much higher than the intro APR and you can pay off most of the balance during the intro period.
What is a balance transfer fee?
Most balance transfer cards charge a fee of 3-5% of the transferred amount. On a $5,000 transfer with a 3% fee, you would pay $150. Some cards offer no-fee transfers, but they are rare and usually have shorter intro periods.
What happens when the intro APR ends?
After the intro period, the remaining balance accrues interest at the card's regular APR, which is typically 18-28%. This is why it is important to pay as much as possible during the intro period.
Can I transfer a balance to the same bank?
Most banks do not allow balance transfers between their own cards. You typically need to transfer to a card from a different bank or issuer.
Does a balance transfer affect my credit score?
Applying for a new card causes a hard inquiry (small temporary dip). However, the transfer itself can help your score by spreading your debt across more available credit, lowering per-card utilization.