Balance Transfer Savings Calculator
Quick answer: On a $5,000 balance at 24.99% APR, a 0% balance transfer for 18 months avoids about $1,874.25 in interest (estimate), but the 3% transfer fee costs $150.00 — leaving estimated net savings of $1,724.25. The figures assume you clear the balance within the promo window and use a simple-interest approximation, so treat them as estimates, not exact amounts.
Will a 0% balance transfer actually save you money once the transfer fee is counted? This balance transfer savings calculator estimates the interest you'd avoid, the transfer fee, and the net savings — plus how many months your payment plan takes.
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Your results
Estimates. Assumes the balance is cleared within the promo window and no new charges are added. See Method & sources below.
How to use this calculator
Enter your balance, current APR, the promo APR and length, the transfer fee percentage, and what you can pay monthly. The interest avoided, fee, net savings, and payoff months update instantly.
For example, moving a $5,000 balance at 24.99% APR to a 0% promo for 18 months avoids about $1,874.25 in interest (estimate); the 3% transfer fee costs $150.00, leaving estimated net savings of $1,724.25. At $300/month the balance clears in 17 months — inside the 18-month window.
How it works
Interest avoided (estimate) = balance × APR ÷ 100 × (promo months ÷ 12). Transfer fee = balance × fee ÷ 100. Net savings (estimate) = interest avoided − transfer fee. Months to pay off = the balance divided by the monthly payment, rounded up.
Reference data
| Figure | How it is derived |
|---|---|
| Interest avoided (estimate) | balance × APR × (promo months ÷ 12) — simple-interest approximation |
| Transfer fee | balance × fee % — exact, from the fee you enter |
| Net savings (estimate) | interest avoided − transfer fee |
| Months to pay off | balance ÷ monthly payment, rounded up |
Source: no external data is consumed on this page — the figures above state the estimation model; every number is computed live from your inputs.
Method & sources
This tool uses a simple-interest approximation rather than full credit-card amortization: it treats the full balance as accruing the current APR for the whole promo period. Exact card interest compounds daily on a declining balance and depends on payment timing, so the avoided-interest figure is labeled an estimate. Assumptions: the transferred balance is cleared within the promo window, the promo APR applies to the full window, and no new charges are added.
- No external data sources are used on this page — every figure is computed live from your inputs with the model above.
Worked example
$5,000 balance, 24.99% APR, 0% for 18 months, 3% fee, $300/month payment. Interest avoided (estimate): $5,000 × 0.2499 × (18 ÷ 12) = $1,874.25. Transfer fee: $5,000 × 3% = $150.00. Net savings (estimate): $1,874.25 − $150.00 = $1,724.25. Months to pay off: $5,000 ÷ $300 = 16.7 → 17 months, inside the 18-month promo window.
Frequently asked questions
How is the interest avoided calculated?
With a simple-interest approximation: balance × APR × (promo months ÷ 12). For $5,000 at 24.99% over 18 months: $5,000 × 0.2499 × 1.5 = $1,874.25. This is a planning estimate — real interest compounds on a declining balance and depends on payment timing.
Is the net savings guaranteed?
No — the figures are estimates. They assume you pay off the full balance within the promo window and make no new charges; a late or missed payment can end the promo rate on many cards.
What if I cannot pay it off before the promo ends?
The estimate assumes you clear the balance within the promo window. If you cannot, compare the transfer against simply paying down the current card — our credit card payoff calculator shows the real amortization.
Does the transfer fee always apply?
It is a percentage of the transferred balance that you enter here — 3% in the worked example. Cards charge different fees, so enter the fee your offer carries.
Why is this an estimate and not exact?
Exact credit-card interest compounds on a declining balance and depends on when each payment lands. This tool uses a simple-interest approximation (balance × APR × promo months ÷ 12) to give a fast planning figure.