How does the calculator compare keeping versus transferring?
The calculator runs two payoff schedules with the same fixed monthly payment. In the first, the balance stays on your current card and accrues interest at its APR divided by 12. In the second, the transfer fee is added to the balance, and the larger amount accrues interest at the new card's APR. Both schedules continue month by month until the balance is gone.
Cost to keep current is the total interest on the first schedule. Cost to transfer is the fee plus the total interest on the second. Net savings is the first minus the second, so a positive number favors the transfer and a negative number favors staying.
Holding the payment equal is what makes the comparison fair: the only things that differ are the rate and the fee. The calculator also reports how long the transfer option takes to pay off, which is usually shorter because more of each payment reaches principal at the lower rate.
Fee = Balance × fee % Cost to keep = total interest at current APR Cost to transfer = Fee + total interest on (Balance + Fee) at new APR Net savings = Cost to keep − Cost to transfer
- Balance
- amount being moved
- fee %
- one-time balance transfer fee rate
- APR
- annual percentage rate on each card
Example: moving $7,500 from 25.24% to 15.9%
Scenario: Say you owe $7,500 on a card at 25.24% and pay $300 a month. You are offered a card with a 15.9% ongoing APR and a 3% transfer fee, and you will not use either card for new purchases.
- Transfer fee$7,500 × 3% = $225.00, so the new balance starts at $7,725.00
- First-month interest, each cardKeep: $7,500 × 25.24% ÷ 12 = $157.75; transfer: $7,725.00 × 15.9% ÷ 12 = $102.36
- Cost to keep currentPaying $300 at 25.24% takes 36 months and costs $3,255.02 in interest
- Cost to transferPaying $300 at 15.9% takes 32 months: $1,786.53 interest + $225.00 fee = $2,011.53
- Net savings$3,255.02 − $2,011.53 = $1,243.49
The transfer saves $1,243.49 and finishes 4 months sooner, assuming the 15.9% rate holds and no new charges are made.
If the old card stays open and its balance creeps back up, you could end up carrying two balances, which would wipe out the savings.
When should you run a balance transfer comparison?
You received a lower-rate card offer
Offers highlight the new rate but bury the fee. Entering both shows whether the deal actually puts money in your pocket at the payment you can afford.
Comparing two offers with different fees
A card with a slightly higher rate and no fee can beat one with a lower rate and a 5% fee, especially on a short payoff. Run each offer against your current card and compare net savings.
Your payoff will take more than a year or two
The longer the balance sits, the more a lower ongoing rate matters. A standard-rate transfer, rather than a short promotion, is mainly useful for balances you will carry for a while.
You want to see the cost of staying put
Even if you decide not to transfer, the cost-to-keep figure tells you what your current card will charge you through payoff, which can motivate a higher payment.
What mistakes make balance transfers backfire?
Running the old card back up
Once the old card shows a zero balance, the available credit is tempting. New spending there leaves you with the transferred debt plus a fresh balance, which is the most common way transfers end up costing more.
Ignoring the fee on a small rate gap
A 3% to 5% fee is a real cost. If the new rate is only a few points lower, the interest saved may never catch up with the fee, as the table on this page shows.
Making new purchases on the transfer card
Purchases may carry a different APR than the transferred balance, and carrying a balance often removes the grace period on purchases. Payments above the minimum generally go to the highest-rate balance first, but the minimum itself can be applied to the lower-rate balance.
Lowering your payment after transferring
The savings assume you keep paying the same amount. Dropping to the new card's lower minimum stretches the payoff and gives back much of the benefit.
Assuming the full balance will be approved
The new issuer sets the credit limit and may approve only part of the transfer. A partial transfer still helps, but the remaining balance keeps accruing at the old rate.
When does the transfer fee outweigh the lower rate?
The fee is a fixed upfront cost; the rate savings depend on the rate gap and how long you carry the balance. With a wide gap the fee is recovered quickly. With a narrow gap the fee can exceed everything the lower rate saves, especially because the fee itself is added to the balance and accrues interest.
The table holds the $7,500 balance, the 25.24% current APR and the $300 payment constant, then varies the fee and the new card's rate. Negative figures mean transferring costs more than keeping the balance where it is.
| Transfer fee | New APR 15.9% | New APR 19.9% | New APR 23.9% |
|---|---|---|---|
| 0% | $1,584.59 | $988.17 | $273.67 |
| 3% | $1,243.49 | $596.74 | −$186.30 |
| 5% | $1,013.04 | $330.68 | −$500.41 |
Terms used on this page
- Balance Transfer
- A balance transfer moves debt from one credit card or loan to another card, usually to take advantage of a low or 0% promotional APR. It can cut interest sharply while you pay down the balance, but most transfers carry a fee, and any amount left when the promotion ends is charged the regular rate.
- Balance Transfer Fee
- A balance transfer fee is a one-time charge for moving debt onto a credit card, usually a percentage of the amount transferred, often with a dollar minimum. The fee is added to your new balance right away, so it is the upfront price of a lower promotional rate and must be weighed against the interest you save.
- APR (Annual Percentage Rate)
- APR is the yearly cost of borrowing expressed as a single percentage that includes the interest rate plus certain required fees, such as origination charges. Because lenders must calculate it the same way under federal Truth in Lending rules, APR lets you compare loan offers on an even footing.
- Promotional APR
- A promotional APR is a temporary, reduced interest rate, often 0%, that a card issuer offers for a set period on purchases, balance transfers or both. When the promotion ends, any remaining balance is charged the card's regular APR. It can save real money if you plan to pay the balance off within the window.
- Credit Utilization
- Credit utilization is the share of your available revolving credit that you are currently using, shown as a percentage. It is calculated by dividing your card balances by your credit limits, both per card and across all cards. Lower utilization generally helps credit scores, and it is one of the factors you can change quickly.
Balance Transfer Calculator: common questions
How is a balance transfer fee calculated?
It is a percentage of the amount you move, often with a dollar minimum, and it is added to the new card's balance. A 3% fee on $7,500 is $225.00. Because it is part of the balance, it also accrues interest unless the transfer carries a 0% rate. The card's terms list the exact fee.
Does a balance transfer hurt your credit score?
There can be a small, short-term dip from the new account application and a younger average account age. Over time, a lower rate can help you pay down balances faster, which lowers utilization. Closing the old card can raise utilization by removing its limit, so many people keep it open but unused.
Can I transfer a balance between two cards from the same issuer?
Generally no. Issuers usually do not allow transfers between their own cards, so the new card typically needs to be from a different issuer. Check the offer terms before applying. If your current card and the offer come from the same bank, you would need to look elsewhere for a transfer. Moving debt between different issuers is the usual route, and the new issuer handles paying off the old account once the transfer is approved.
How long does a balance transfer take?
It often takes from several days to a couple of weeks for the new issuer to pay the old account. Keep making at least the minimum payment on the old card until you confirm the transfer has posted, so you do not miss a due date in the gap. The old card may also post one more interest charge before the transfer lands, so check its final statement and clear any small leftover amount.
What happens to new purchases on a balance transfer card?
They may accrue interest at the purchase APR, which can differ from the transfer rate. When you carry a balance, most cards charge interest on new purchases right away. Federal rules generally require payments above the minimum to go to the highest-rate balance first, but keeping purchases off the card is simplest.
Is a balance transfer better than a personal loan for card debt?
It depends on the rates, fees and how long you need. A transfer can be cheaper if the rate is low and the fee modest. A personal loan offers a fixed payment and end date, which some people find easier to stick to. The debt consolidation calculator models the loan side.
What if the new card's APR is variable?
Then the savings shown are an estimate based on today's rate. Most card APRs move with a benchmark rate, and issuers must give advance notice before most rate increases. Testing a rate a couple of points higher shows how much margin your savings have. A wide gap between your current rate and the new one gives more protection against a future increase than a narrow one does.
How much credit card debt can I transfer?
Up to the limit the new issuer approves, minus the fee, which uses some of that limit. Some issuers cap transfers below the full credit line. If the approved amount is smaller than your balance, prioritize moving the highest-rate debt. Remember that the fee counts against the limit too, so a $5,000 limit with a 3% fee can absorb a transfer of only about $4,854.
Should I close my old card after a balance transfer?
Not necessarily. Keeping it open preserves your available credit, which helps utilization, and keeps the account's history. If an annual fee or the temptation to spend is a concern, closing it may make sense. The key is not adding a new balance to it. Closing an older card can also shorten your average account age over time, which is another reason many people keep it open with a zero balance.
Sources
- Credit cards — Consumer Financial Protection Bureau. Accessed October 17, 2026.
- Regulation Z (Truth in Lending), 12 CFR Part 1026 — Consumer Financial Protection Bureau. Accessed October 17, 2026.
- Credit reports and scores — Consumer Financial Protection Bureau. Accessed October 17, 2026.
We cite primary sources: regulators, central-bank data and federal agencies. Worked examples on this page are our own calculations, last checked October 17, 2026. See our methodology.