Keep the balance or transfer it?
A balance transfer moves debt from one credit card to another, usually to get a low promotional APR for a set number of months. Whether it is worth it depends on four things: the transfer fee, how long the promotion lasts, the APR after it ends, and how much you pay each month. This calculator runs two month-by-month schedules with the same fixed monthly payment: keeping the balance at your current APR, and transferring it. With the default example, a $5,000.00 balance at 24% APR, a $300.00 payment and a 0% offer for 15 months with a 3% fee, the transfer saves about $971.67 in total borrowing cost.
Why 0% APR can still cost money
Most transfers charge a fee, often a percentage of the amount moved with a minimum amount. The U.S. Consumer Financial Protection Bureau explains that a fee can apply even when the promotional rate is 0%. Here the fee is the larger of the percentage and the minimum, and it is counted exactly once. Moving $1,000.00 with a 3% fee costs $30.00 even if no interest is ever charged.
What happens after the promo
When the promotional months end, any remaining balance is charged at the later APR, which can be as high as or higher than your current card. The calculator switches rate in the month after the promotion: with 2 promo months at 0% and 12% afterwards, a $1,000.00 balance and a $100.00 payment fall to $900.00 and $800.00, then month 3 adds $8.00 of interest and closes at $708.00. If the payment is too small to clear the balance in time, the result can flip. In the default example, a $150.00 payment instead of $300.00 leaves $2,900.00 when the promotion ends, and the overall saving falls to $2,368.87.
Monthly payment to finish before expiry
The calculator also shows the payment that would clear the transferred balance by the end of the promotion, using the promotional APR. For $1,000.00 with a 3% fee added and 12 months at 0%, that is $1,030.00 ÷ 12 = $85.83 a month. If the fee is paid upfront instead, it is $83.33 a month plus the $30.00 fee at the start. This figure is a guide; the comparison always uses the payment you entered.
Fee financed versus paid upfront
If the fee is added to the transferred balance, you pay it off with your monthly payments, and it is part of the balance that can attract interest after the promotion. If you pay it upfront, it is cash spent at the start. In the $1,000.00 example the transfer takes 11 months with the fee added and 10 months with it paid upfront; total cash paid is $1,030.00 either way, against $1,058.98 for keeping the card at 12% APR, which costs $58.98 in interest over 11 months. The net saving is $28.98.
Monthly-model and actual-contract limits
This is a simplified model: interest is charged monthly on the balance at the start of each month, one fixed payment is made at the end of each month, and the final payment only covers what is owed. Card issuers usually charge interest daily, can treat the fee differently, may require minimum payments, and apply separate rates to new purchases; the CFPB covers interest on new purchases after a transfer. The calculator does not model annual fees, partial transfers, penalty rates, credit approval or credit scores. Read your card agreement before deciding; this is an estimate, not advice. For several debts at once, use the debt payoff calculator; for an installment loan, the loan payment calculator. Building an emergency fund is a separate task that can help avoid new card debt.
FAQ
Is a 0% balance transfer free?
Not usually. A transfer fee often applies even at 0% APR, and any balance left after the promotion is charged at the later APR.
How is the transfer fee calculated?
As a percentage of the balance moved, or the minimum fee if that is larger. A 3% fee on $5,000.00 is $150.00.
What if I don’t pay it off in time?
The remaining balance is charged at the APR after the promotion. The calculator shows the balance at promo end and the full schedule after it.
Is the fee added to my balance?
Often, yes. Choose “Added to balance” to finance it, or “Paid upfront” if you pay it separately. It is counted once either way.
Why is there no savings verdict for my payment?
Because at least one balance is not paid off within 600 months, or the payment never covers the interest. A lifetime saving would be misleading, so only the months simulated are shown.
Does this include new purchases or card approval?
No. It models one existing balance and one transfer. New purchases, approval and credit-score effects are outside this calculator.