Is a balance transfer worth it?

A balance transfer is worth it when the interest you save at the lower (often 0%) intro rate is more than the transfer fee. The calculator compares both scenarios over the full payoff and shows the net saving after the fee, so you can decide with a number rather than a guess.

How does the balance transfer fee work?

Most cards charge a one-off fee of about 3-5% of the amount transferred, usually added to your new balance. On a $6,000 transfer a 3% fee is $180. You only save money if the interest avoided during the intro period is larger than that fee.

What happens when the 0% intro period ends?

Any balance left after the intro months starts accruing interest at the card's go-to APR. To get the most from a transfer, aim to clear as much of the balance as possible before the 0% period ends — the calculator accounts for the go-to rate on whatever remains.

Does a balance transfer hurt my credit?

Opening a new card causes a small, temporary dip from the hard inquiry, but lowering your utilisation as you pay the balance down often helps over time. Avoid running the old card back up after transferring.

fin·calc

Balance Transfer Calculator

Updated: August 2026 · Estimates only — check the card's terms.

Thinking of moving a credit-card balance to a 0%-intro card? Enter your current card and the transfer offer, and this tool compares both paths over the full payoff — including the transfer fee and the go-to rate — to show your real net saving. It works in any currency.

Your current card

Balance

Current APR

The transfer offer

Intro APR

Intro period (months)

Transfer fee

Go-to APR (after intro)

What you pay

Monthly payment

Stay on current card

$1,739

interest over 26 mos

Transfer

$289

$109 interest + $180 fee

The fee is added to the transferred balance; interest is charged at the intro rate for the intro months, then the go-to rate on whatever remains. Payoff calculator →

When a balance transfer actually saves money

A balance transfer swaps your current interest rate for a low or 0% introductory rate for a set number of months, in exchange for a one-off fee — usually 3–5% of the amount moved. It pays off only when the interest you avoid during the intro period is larger than that fee. The calculator settles the question by simulating both paths at your real monthly payment and showing the net saving after the fee, so you're not guessing.

Worked example

A $6,000 balance at 24% APR, paying $300 a month, costs around $1,739 in interest if you stay put. Transfer it to a card offering 0% for 15 months with a 3% ($180) fee and a 22% go-to rate, and the total cost falls to about $289 (a little interest after the intro period, plus the fee) — a net saving of roughly $1,450. Enter your own offer above.

Getting the most from a transfer

Clear the balance before the intro period ends. Whatever remains starts accruing at the go-to rate, which is often as high as your old card.
Compare the fee to the saving, not to zero. A 3% fee is worth paying if it saves you far more in interest — which the net-saving figure above shows directly.
Don't reuse the old card. Running the balance back up defeats the purpose and leaves you with two debts.

Methodology & assumptions

Both scenarios are simulated month by month at your fixed monthly payment. The transfer scenario adds the fee to the balance, charges the intro APR for the intro months, then the go-to APR on any remaining balance. It assumes monthly compounding, a fixed payment, and no new spending. Real cards may compound daily and apply payments in a specific order; treat this as a planning estimate. See our methodology and editorial policy.

Frequently Asked Questions

How big is a typical transfer fee?

Usually 3–5% of the amount transferred, charged once and added to the new balance.

What if I can't clear it during the 0% period?

The leftover balance accrues at the go-to APR. The calculator includes that, so the net saving already reflects it.

Is the fee always worth it?

No — if you'd clear the balance quickly anyway, or the intro period is short, the fee can outweigh the saving. The verdict above tells you which way it falls for your numbers.

Not sure what payment to use?

See how long your current card takes and the interest it costs at different payments first.

Open the payoff calculator →

Related calculators

Sources

Uses standard reducing-balance interest math with an intro/go-to rate split and a one-off fee. Figures are estimates for planning — confirm the fee, intro length and go-to APR in the card's terms. See our methodology and editorial policy.