Is a 0% balance transfer worth it?

A 0% balance transfer is worth it if the interest you save during the promotional period exceeds the transfer fee (typically 3-5% of the balance). Use the calculator to compare.

How much does a balance transfer cost?

Balance transfer fees typically range from 3% to 5% of the transferred amount. For a $5,000 transfer, the fee would be $150-$250. Some cards offer no-fee transfers during promotions.

How long should my balance transfer promotional period be?

Look for promotional periods of at least 12-18 months. The longer the 0% APR period, the more time you have to pay down principal without accruing interest.

What happens after the balance transfer promotional period ends?

After the promotional period, the regular APR applies to any remaining balance. It's important to pay off the transferred balance before the promo period ends to maximize savings.

Balance Transfer Calculator

0% APR balance transfer offers sound great — but does the math actually work in your favor? Plug in the numbers and find out.

Current Balance

Current APR

Transfer Promo APR

Usually 0% for balance transfers

Transfer Fee

Typically 3–5% of balance transferred

Promotional Period

months

How long the low rate lasts

Regular APR After Promo Period

The rate that applies after the promo ends

Monthly Payment

Enter your numbers to see if a balance transfer saves you money.

	Keep Current Card	With Transfer	Difference
Total Interest	—	—	—
Transfer Fee	—	—	—
Total Paid	—	—	—
Time to Payoff	—	—	—

Are Balance Transfers Worth It?

A 0% balance transfer can save you hundreds or thousands in interest — but only if:

You can pay off the balance before the promotional period ends. After that, the regular APR kicks in — enter that rate above for an accurate estimate. It may be different from your current card's APR.
The transfer fee (usually 3%) is less than the interest you'd otherwise pay.
You stop using the new card for purchases — purchases often accrue interest immediately at a higher rate.

How Balance Transfers Work

A balance transfer allows you to move existing credit card debt to a new card with a lower or 0% introductory APR. This can save you hundreds or thousands of dollars in interest, giving you a window of 12-21 months to pay down your principal without accruing new interest charges. However, balance transfers come with costs and conditions that you need to understand before proceeding.

Most balance transfer cards charge a transfer fee of 3-5% of the transferred amount. For a $5,000 transfer at 3%, that's a $150 fee. However, if you're currently paying 24% APR, the interest you'd pay over just one month on $5,000 is about $100. So the transfer fee pays for itself in less than two months, and the savings continue to compound over the promotional period.

Balance Transfer Math: Is It Worth It?

To determine if a balance transfer makes sense, compare the transfer fee against the interest you'd save during the promotional period. For example: if you transfer $5,000 from a 24% APR card to a 0% APR card with a 3% fee ($150) and a 15-month promotional period, you'd save approximately $1,500 in interest over those 15 months. Net savings: $1,350. The key is to pay off as much of the balance as possible before the promotional period ends and the regular APR kicks in.

Balance Transfer Pitfalls to Avoid

Balance transfers can be powerful debt payoff tools, but they have pitfalls:

New purchases: New purchases may accrue interest at the regular APR immediately, even during the 0% promotional period for balance transfers.
Transfer limits: You may not be able to transfer your entire balance — the new card's credit limit may be lower than your existing balance.
Time limits: Most cards require you to complete the transfer within 60-120 days of account opening to qualify for the promotional rate.
Post-promotional APR: After the promotional period ends, any remaining balance is subject to the regular APR, which may be higher than your original card.
Repeated transfers: Continuously transferring balances without paying down principal can lead to a cycle of debt that's difficult to escape.

Use our calculator above to model your specific situation and determine whether a balance transfer will save you money. The best strategy is to combine a balance transfer with a commitment to pay more than the minimum each month.