Our credit card balance transfer calculator shows exactly how much money you could save by moving high-interest debt to a card with a 0% introductory APR period. Instead of watching hundreds of dollars disappear into interest payments, every dollar you pay goes directly toward eliminating your balance.
Key Insights
- Transfer high-interest debt to a 0% APR card to save money and accelerate payoff.
- Prioritize balance transfer cards with longer 0% APR periods and lower transfer fees.
- Gather current balance, purchase APR, transfer fee, and 0% period for accurate planning.
- Verify target card covers balance transfers, not just purchases; avoid same-issuer transfers.
How the Balance Transfer Calculator Works
The calculator estimates your potential savings by comparing two scenarios: keeping debt on your current high-interest card versus transferring it to a 0% APR card. The results assume you'll pay off the debt within the promotional period using equal monthly payments..
Finding Your Current Debt Information
Your existing credit card balance appears on your monthly statement or online account. Enter the total balance owed, not the minimum payment amount (which is typically displayed more prominently).
Your current interest rate (APR) is listed in the "Interest charges" or "Interest charge calculation" section of your statement. Look specifically for the "purchase APR"—this is the rate applied to your transferred balance.
Understanding Balance Transfer Card Details
Transfer fees range from 3% to 5% of the amount transferred. You'll find this information in the Schumer box – a required disclosure table available on the card's marketing page (look for "See rates and fees" or "See terms"). A typical fee structure reads "3% of amount transferred, or $10, whichever is greater." For transfers over a few hundred dollars, you'll pay the percentage amount.
The 0% introductory period length also appears in the Schumer box under "Annual percentage rate for balance transfers." This tells you how many billing periods you get at 0% before the rate jumps to the regular APR.
Interpreting Your Results
Your calculator results show potential savings based on two key assumptions:
Assumption 1: Full Payoff During the Promotional Period
If your target card offers 18 months at 0%, the calculator compares:
- Paying off current debt over 18 months at your existing rate
- Paying off the same debt over 18 months at 0% (plus the transfer fee)
The difference equals your potential savings.
Assumption 2: Equal Monthly Payments
Your payment schedule dramatically affects total interest costs. Consider a debt of $3,000 at 16% interest:
| Monthly Payment | Total Interest | Payoff Time |
|---|---|---|
| $1,400 | $65 | 3 months |
| $500 | $148 | 7 months |
| $190 | $390 | 18 months |
| $120 | $674 | 31 months |
The calculator assumes consistent monthly payments that eliminate debt within your chosen timeframe.
Understanding the True Cost of High-Interest Debt
Without a balance transfer, your debt costs compound over time. Simply dividing your balance by months won't give you an accurate monthly payment—interest charges mean you need to pay more than the basic mathematical division would suggest.
For example, eliminating $1,000 at 16% interest in 10 months requires $107.48 monthly, not $100. That extra $7.48 covers interest charges that would otherwise extend your debt indefinitely. This is why high-interest debt can feel almost impossible to eliminate with minimum payments alone.
How Balance Transfers Actually Work
A balance transfer answers this common question: "Can I use one credit card to pay off another?"
Here's the process:
- Apply for a balance transfer card with a 0% promotional rate.
- Request the transfer (during application, by phone, or using convenience checks).
- Your new card's bank pays your old card directly.
- The transferred amount (plus transfer fee) appears on your new card.
- You pay only the transfer fee and regular payments during the 0% period.
Choosing the Right Balance Transfer Card
Balance transfer cards share similar mechanics but differ in four critical areas:
Transfer Fee Structure: Fees typically run 3% to 5% of transferred amounts ($30 to $50 per $1,000). Lower fees are better, but even higher fees often pay for themselves through interest savings.
Length of 0% Period: Quality cards offer 15+ months at 0%, with some approaching two years. Longer periods provide more flexibility, even if you don't need the full term.
Card Issuer Restrictions: You cannot transfer debt between cards from the same issuer. Chase debt can't move to another Chase card, Bank of America debt can't move to another Bank of America card, and so forth.
Post-Promotional Value: Many balance transfer cards offer minimal rewards or benefits after the 0% period ends. However, several excellent rewards cards include 15–18 month balance transfer promotions, giving you ongoing value after debt elimination.
Please note: Some cards offer 0% on purchases but not balance transfers. Verify that your target card includes transferred debt in its promotional rate.
Your Next Steps
Ready to calculate your potential savings? Gather your current card statement, identify a target balance transfer card, and use our calculator to see real numbers.
Remember: For every month you carry high-interest debt, it will cost you money. A balance transfer isn't just about saving interest—it's about redirecting those payments toward actual debt reduction and accelerating your path to financial freedom.
Calculate your savings now, and take the first step toward eliminating credit card debt for good.
