About

A balance transfer moves existing credit card debt to a new card offering a lower or 0% introductory APR. The financial benefit depends on the interplay between the transfer fee (typically 3 - 5% of the transferred balance), the duration of the promotional period, and the regular APR that applies afterward. Miscalculating any of these variables risks paying more in fees than you save in interest. This calculator runs a full month-by-month amortization for both scenarios - keeping your current cards versus consolidating onto a transfer card - and compares total cost over the entire payoff horizon. It assumes minimum payments follow the standard formula: max(25, 1% of balance + interest). Pro tip: a 0% intro rate only helps if you pay aggressively during the promo window. If the remaining balance rolls into a high regular APR, the transfer may cost more than doing nothing.

Formulas

Monthly interest on each existing card is computed as:

I_m = B × APR12

The minimum payment each month follows the standard issuer formula:

P_min = max(25, 0.01 × B + I_m)

For the balance transfer scenario, the new starting principal includes the transfer fee:

B_transfer = n∑i=1 B_i × (1 + f)

Total savings from the transfer equals the difference in cumulative costs:

S = (Total Interest_current + Total Paid_current) − (Total Interest_transfer + Fee + Total Paid_transfer)

Where B is the current balance, APR is the annual percentage rate, I_m is the monthly interest charge, P_min is the minimum payment, f is the transfer fee as a decimal (e.g., 0.03 for 3%), n is the number of existing cards, and S is the net savings. A negative S means the transfer costs more than keeping your current cards.

Reference Data

Intro APR Offer	Typical Duration	Transfer Fee	Regular APR After	Best For
0%	12 - 21 months	3 - 5%	17 - 27%	Large balances you can pay off in promo period
0%	6 - 12 months	0%	20 - 29%	Small balances with fast payoff plans
3.99%	12 - 18 months	3%	15 - 22%	Moderate balances, prefer lower post-promo rate
5.99%	Life of balance	3 - 5%	N/A (fixed)	Long-term debt at predictable cost
Common Credit Card APR Benchmarks (US, 2024)
Average purchase APR		20.72%
Low-interest cards		13.99 - 17.99%
Store credit cards		25 - 30%
Cash advance APR		24 - 29%
Penalty APR		29.99 - 31.49%
Minimum Payment Rules by Issuer Type
Major banks		max($25, 1% + interest + fees)
Credit unions		max($20, 2% of balance)
Store cards		max($25, 1% + interest)
Transfer Fee Cost on Common Balances
$2,000 at 3% fee		$60
$5,000 at 3% fee		$150
$10,000 at 3% fee		$300
$5,000 at 5% fee		$250
$10,000 at 5% fee		$500
$15,000 at 5% fee		$750

Frequently Asked Questions

The transfer fee is added to your principal on month one. At a 3% fee on $10,000, that is $300 in upfront cost. You must save at least $300 in interest before breaking even. If your current weighted average APR is 22% and the intro rate is 0%, your monthly interest savings are roughly $183, so breakeven occurs around month 2. But if your existing APR is only 14%, monthly savings drop to about $117, pushing breakeven to month 3. The calculator shows the exact breakeven month.

Any unpaid balance immediately begins accruing interest at the card's regular APR. If the regular rate is 24.99% and you have $4,000 remaining, that is approximately $83 in interest in the first post-promo month alone. This calculator models the full payoff including the post-promo period so you can see total cost, not just the promotional window.

Minimum payments extend the payoff timeline significantly because as the balance shrinks, the payment shrinks too, slowing principal reduction. A fixed monthly payment (equal to or greater than your combined current minimums) maintains constant payoff velocity. This calculator lets you toggle between minimum and fixed payment strategies to compare outcomes. In general, fixing your payment at the sum of your current minimums reduces total interest by 30 - 60%.

No. Most balance transfer cards charge the regular APR on new purchases from day one, and payments are typically allocated to the lowest-rate balance first (per the CARD Act, amounts above the minimum go to the highest-rate balance, but the minimum still covers the lowest). Making new purchases on a transfer card undermines the strategy. This tool models a pure payoff scenario with no additional charges.

The calculator uses P_min = max($25, 1% of balance + monthly interest), which matches the standard formula used by most major US issuers. Some issuers use 2% of balance flat (no separate interest component). You can adjust the minimum payment floor and percentage in the advanced settings if your issuer differs.

Yes. Add each existing card with its balance and APR. The calculator sums all balances, applies the transfer fee to the total, and simulates payoff on a single transfer card. Be aware that most transfer cards have a credit limit. If your combined debt exceeds the new card's limit, you can only transfer a partial amount. In that case, model only the portion you plan to transfer.