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Net Savings
$0
Interest Avoided
$0
Transfer Fee
$0
Calculate how much you'd save by transferring a credit card balance to a lower-rate card.
$0
Interest Avoided
$0
Transfer Fee
$0
Estimate interest that would accrue on the current card over the promo period, subtract the balance transfer fee, to find net savings from moving the balance to a 0% card.
Net Savings = (Balance × Current APR × Promo Months ÷ 12) − Transfer Fee
Balance transfer credit cards offer a promotional 0% (or reduced) APR for a set period, typically 12-21 months, on debt transferred from another card. During this window, payments go entirely toward reducing principal rather than being partially consumed by interest, which can meaningfully accelerate payoff compared to leaving the balance on a high-interest card.
Almost all balance transfer offers charge an upfront fee, commonly 3-5% of the transferred amount, deducted regardless of how much interest is ultimately saved. For a transfer to make financial sense, the interest saved over the promotional period needs to exceed this fee by a meaningful margin, which is generally true for larger balances and longer promotional periods.
The biggest risk with a balance transfer is not paying off the transferred balance before the promotional 0% period expires. Once the intro period ends, any remaining balance typically starts accruing interest at the card's standard ongoing APR, which is often high, potentially erasing much of the benefit if a large amount remains unpaid at that point. Calculating a required monthly payment to clear the balance in time is an important companion step to this savings estimate.
Opening a new credit card for a balance transfer involves a hard credit inquiry and adds a new account, both of which can temporarily affect your credit score. However, successfully paying down debt through a transfer can improve your credit utilization ratio over time, which is generally a positive factor for credit scores in the medium to long term.
A balance transfer moves debt from a high-interest card to a card with a lower or 0% introductory APR, reducing or eliminating interest charges during the promotional period, minus a one-time transfer fee typically charged as a percentage of the transferred balance.
Balance transfer fees commonly range from 3% to 5% of the transferred amount, charged upfront regardless of the promotional interest rate offered. This fee should be weighed against the interest savings to determine if a transfer is worthwhile.
Once the introductory period expires, any remaining balance typically starts accruing interest at the card's standard ongoing APR, which can be high. Paying off the transferred balance in full before the promotional period ends is key to maximizing the benefit.
Plan your full payoff timeline with the Debt Payoff Calculator, or check your credit utilization with the Credit Utilization Calculator.
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