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Credit Card Balance Transfer Calculator: Your Debt Freedom Tool

Written by

September 18, 2025

4 min read

Carrying $5,000 in credit card debt at 18% interest costs you $900 annually in interest alone. But what if you could reduce that cost to zero?

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..

Balance transfer savings calculator
Transferring debt to a credit card with a 0% introductory annual percentage rate, or APR, could save you hundreds of dollars in interest while you pay down your debt.
Your existing credit card debt
Details of balance transfer card
Important Assumptions
These savings are an estimate. To realize them, you must pay off the entire transferred balance before the 0% introductory period ends.
This calculation assumes you make equal monthly payments to clear the debt in time.
The 0% offer may not apply to new purchases. Check the card's terms and conditions.
After the intro period, the interest rate will increase to a much higher standard rate. Any remaining balance will accrue interest at that new rate.
To pay off your debt in time, divide your new balance (debt + transfer fee) by the number of 0% months to find your required monthly payment.
Your existing credit card debt
* Interest calculations are estimates. Actual finance charges will vary according to your payments and your credit card's terms.

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.

Pro tip: Planning to pay off debt faster than the full promotional period?

Assumption 2: Equal Monthly Payments

Your payment schedule dramatically affects total interest costs. Consider a $3,000 debt at 16% interest:

Monthly PaymentTotal InterestPayoff Time
$1,400$653 months
$500$1487 months
$190$39018 months
$120$67431 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 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:

  1. Apply for a balance transfer card with a 0% promotional rate
  2. Request the transfer (during application, by phone, or using convenience checks)
  3. Your new card's bank pays your old card directly
  4. The transferred amount (plus transfer fee) appears on your new card
  5. 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.

*Important 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: every month you carry high-interest debt costs 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.

BS
Written byBestmoney Staff

The BestMoney.com editorial team is composed of writers and experts covering a full range of financial services. Our mission is to simplify the process of selecting the right provider for every need, leveraging our extensive industry knowledge to deliver clear, reliable advice.

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