Calculation details
Planning estimate only, not financial, tax, or legal advice. Verify assumptions and current rules before making decisions.
This tool runs in your browser. Your calculator inputs and results are never transmitted to us or to ad/affiliate partners. Ads and sponsored links may set third-party cookies to serve and measure them, but they never receive your calculation values. If you explicitly save a scenario, its permitted fields stay in local browser storage until you clear them. See our Privacy Policy.
Use this result
Share the current inputs or ask ChatGPT to explain the calculation in context.
What does this calculator estimate?
A $5,000 balance at 22 percent APR paid at $400/month costs roughly $700 in interest; a 12-month 0 percent transfer with a 3 percent fee ($150) saves most of that. Savings = interest at current APR - interest at promo rate - transfer fee.
- Transfer fees typically run 3-5 percent of the balance (Wikipedia).
- 0 percent windows apply only if the minimum is paid on time.
- The promo rate usually reverts to the standard APR after the window.
How balance transfers save money
A balance transfer moves debt to a card with a 0% (or low) introductory APR, stopping or reducing interest for a period. The savings come from paying principal instead of interest — but the transfer fee and the promo deadline must be factored in.
Limitations to watch for
If the balance isn't paid by the promo end, the remaining balance jumps to the standard APR — often retroactively. Transfer fees (3–5%) reduce the savings. New purchases on the card usually carry the standard APR.
How to use it in practice
Compare the promo rate, fee, and deadline against your current APR. Only transfer if the fee plus remaining interest is clearly less. Set a payment plan that clears the balance before the promo ends.
['Enter the balance, current APR, and promo APR/months.', 'Enter your monthly payment and the transfer fee.', 'The tool compares total interest and shows savings.']
How this calculator works
Formula
Simulates paying off a balance at the current APR vs a 0% (or low) promotional rate: interest paid in each scenario; savings = interest at current APR − interest at promo rate, minus the transfer fee.
Worked example
A $5,000 balance at 22% APR paid at $400/month costs roughly $700 in interest over 12 months; a 0% transfer for 12 months with a 3% fee ($150) saves most of that.
Assumptions to verify
- Payments are made monthly at the entered amount.
- No new purchases are added to the card.
- The promo rate applies for the full stated period.
Frequently asked questions
How much can a balance transfer save?
The interest difference between your current APR and the promo rate, minus the transfer fee. The tool computes it exactly.
What is a balance transfer fee?
A charge to move the balance — usually 3–5% of the amount. $5,000 at 3% costs $150.
What happens when the promo ends?
The remaining balance reverts to the standard APR — which is why paying off before the deadline is critical.
Is a 0% transfer always worth it?
Only if the fee plus any remaining interest is less than the interest you'd otherwise pay. Run the numbers.
Does the promo apply to new purchases?
Usually not — new purchases typically carry the standard APR.
How should I pay it off?
Set a monthly payment that clears the balance before the promo ends, and don't add new debt to the card.
Does transferring hurt my credit?
A hard inquiry and the new account can temporarily lower your score; utilization changes can help or hurt.
Cite this tool
BoringToolsKit. “Balance Transfer Savings Calculator.” boringtoolskit.com/balance-transfer-savings-calculator/ (reviewed 2026-08-25). Free to reference in articles, syllabi, and answer posts with a link.
Privacy: Inputs and results stay in this browser. Any future sponsored recommendation or advertisement will be clearly labeled and kept separate from the calculation.