# Does a balance transfer pay off?

Compares paying off a credit card balance where it is with a balance transfer: the transfer fee, the interest at the intro and regular APR, the months to pay off, and the money saved at the same monthly payment.

- Page: https://www.acalculator.org/finance/balance-transfer-calculator
- JSON spec: https://www.acalculator.org/finance/balance-transfer-calculator.json
- Version: 14e5ec3a0be5

## Default answer

Example with the default inputs (Balance to transfer $6,000.00, Current card APR 22%, Monthly payment $300.00, Transfer fee 3%, Minimum fee $5.00, Intro APR 0%, Intro months 18, APR after the intro 24%): A balance transfer saves $1,333.24.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| bal | Balance to transfer | What you owe on the current card. |
| apr | Current card APR | The yearly interest rate on the card you owe now. |
| pay | Monthly payment | What you pay each month, the same on either card. |
| fee | Transfer fee | The fee as a percent of the balance transferred, often 3% to 5%. |
| feemin | Minimum fee | The fixed fee charged when it is more than the percent fee. |
| iapr | Intro APR | The promotional APR on the transferred balance, often 0%. |
| imo | Intro months | How many months the intro APR lasts. |
| napr | APR after the intro | The new card’s regular APR once the intro period ends. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| saved | You save | Current card interest − (new card interest + transfer fee). |
| fee | Transfer fee | The percent of the balance, or the minimum fee if that is more. |
| oldInterest | Interest if you stay | All the interest paid on the current card until it is paid off. |
| cardInterest | Interest after the transfer | All the interest paid on the new card. |
| oldMonths | Months to pay off if you stay | Monthly payments until the current card is paid off. |
| cardMonths | Months to pay off after the transfer | Monthly payments until the new card is paid off. |
| left | Left when the intro ends | The new card’s balance after the intro months (0 when paid off before). |
| toClear | Payment to clear it in the intro | The level monthly payment that pays off the balance and fee within the intro months. |
| verdict | Verdict | Whether the transfer saves money. |
| summary | Answer | The saving or the extra cost in one sentence. |

## Method

Fee = max(balance × fee %, minimum fee). Each month: balance × (1 + APR ÷ 1200), then the payment. Saving = current card interest − new card interest − fee.

## Assumptions

- The same monthly payment on either card, and no new purchases.
- Interest is the APR ÷ 12 on the balance each month; card issuers that use a daily rate charge a little more.
- The fee is added to the new card’s balance on the day of the transfer.

## Worked examples

1. bal = $6,000.00, apr = 22%, pay = $300.00, fee = $3.00, feemin = $5.00, iapr = 0%, imo = 18, napr = 24% gives fee = $180.00, oldInterest = $1,542.87, cardInterest = $29.62, oldMonths = 26, cardMonths = 21, left = $780.00, saved = $1,333.24, toClear = $343.33. Source: Consumer Financial Protection Bureau, Credit cards key terms (a balance transfer moves a balance from one card to another, sometimes for a fee; the fee is usually a percentage of the amount transferred or a fixed amount, whichever is more; promotional rates last a limited time), https://www.consumerfinance.gov/consumer-tools/credit-cards/answers/key-terms/ (retrieved 2026-10-02).
2. bal = $5,000.00, apr = 20%, pay = $250.00, fee = $5.00, iapr = 0%, imo = 12, napr = 22% gives fee = $250.00, oldMonths = 25, cardMonths = 22, saved = $651.45, left = $2,250.00. Source: Consumer Financial Protection Bureau, Credit cards key terms (a balance transfer moves a balance from one card to another, sometimes for a fee; the fee is usually a percentage of the amount transferred or a fixed amount, whichever is more; promotional rates last a limited time), https://www.consumerfinance.gov/consumer-tools/credit-cards/answers/key-terms/ (retrieved 2026-10-02); Consumer Financial Protection Bureau, How long can I keep a low rate on a balance transfer or other introductory rate? (the introductory rate lasts at least six months unless a payment is more than 60 days late; the issuer must say what rate applies after), https://www.consumerfinance.gov/ask-cfpb/how-long-can-i-keep-a-low-rate-on-a-balance-transfer-or-other-introductory-rate-en-15/ (retrieved 2026-10-02).
3. bal = $1,000.00, apr = 18%, pay = $100.00, fee = $3.00, feemin = $5.00, iapr = 0%, imo = 21, napr = 25% gives fee = $30.00, cardInterest = $0.00, cardMonths = 11, left = $0.00, saved = $61.62. Source: Consumer Financial Protection Bureau, Credit cards key terms (a balance transfer moves a balance from one card to another, sometimes for a fee; the fee is usually a percentage of the amount transferred or a fixed amount, whichever is more; promotional rates last a limited time), https://www.consumerfinance.gov/consumer-tools/credit-cards/answers/key-terms/ (retrieved 2026-10-02).

## FAQ

### Is a balance transfer worth it?

It is when the interest you avoid is more than the fee. $6,000 at 22% paid at $300 a month costs $1,542.87 in interest over 26 months. Moved to a card at 0% for 18 months with a 3% fee ($180), the same payments cost $29.62 of interest and finish in 21 months: you save $1,333.24.

### How is the balance transfer fee worked out?

The CFPB says the fee is usually a percent of the amount you transfer or a fixed amount, whichever is more; most are 3% to 5%. A 3% fee with a $5 minimum on $1,000 is $30. The fee is added to the new card's balance.

### What happens when the intro period ends?

Any balance left starts to charge the card's regular APR. In the first example, $780 is left after 18 months, so months 19 to 21 charge 24% on it. The calculator shows what is left and the payment that would clear the balance within the intro months.

### How long does an intro rate last?

At least six months, by law, unless you are more than 60 days late with a payment. The card issuer must tell you how long the rate lasts and what rate applies after it. Many offers run 12 to 21 months.

### How do I pay off the balance before the intro rate ends?

Divide the balance plus the fee by the intro months (at 0%). $6,000 plus a $180 fee over 18 months is $343.33 a month; round up to $343.34 so the last cents are covered, and you pay no interest at all.

### Why might my card charge a little more interest?

This page charges APR ÷ 12 each month. Many issuers use a daily rate, APR ÷ 365, on each day's balance, which compounds daily and comes out slightly higher. New purchases on the card can also cost interest; this page assumes none.

## Sources

- Consumer Financial Protection Bureau, Credit cards key terms (a balance transfer lets you move an outstanding balance from one credit card to another, sometimes for a fee; the fee is usually a certain percentage of the amount you transfer or a fixed amount, whichever is more; zero-percent or low-interest balance transfers last for a limited time, then the interest rate may rise; some issuers use a daily periodic rate). https://www.consumerfinance.gov/consumer-tools/credit-cards/answers/key-terms/ (retrieved 2026-10-02)
- Consumer Financial Protection Bureau, How long can I keep a low rate on a balance transfer or other introductory rate? (at least six months unless you are more than 60 days late on a payment; the issuer must tell you how long it lasts and what rate applies after). https://www.consumerfinance.gov/ask-cfpb/how-long-can-i-keep-a-low-rate-on-a-balance-transfer-or-other-introductory-rate-en-15/ (retrieved 2026-10-02)