Balance Transfer Breakeven Calculator
Example: Balance to transfer: 6000 $ · Current card APR: 22.99 % · Balance transfer fee: 3 % · 0% promo period: 18 months · APR after promo ends: 26.99 % · Monthly payment you can make: 350 $
| Net benefit of transferring | $944 |
| Upfront transfer fee | $180 |
| Interest avoided during promo | $1,304 |
| Break-even (months) | 1.57 |
| Remaining balance after promo | $0 |
Worked example
Transferring $6,000 at 22.99% APR to a 0% card with a 3% fee costs $180 upfront. Making $350/month payments, you avoid about $1,030 in interest over 18 months — a net benefit of roughly $850. The fee pays for itself in about 1 month. However, if $2,700 remains when the promo ends and reverts to 26.99%, the urgency to clear it intensifies. The transfer is a clear win here — but only if you do not add to the balance during the promo period.
Frequently asked questions
Does the transfer fee get charged at the new card or old card APR?
The transfer fee is typically added to the new card balance and sits at 0% during the promotional window — it is not charged at the revert APR immediately. However, once the promo period ends, any remaining balance (including the transferred fee) begins accruing interest at the go-to rate.
What happens if I miss a payment during the 0% period?
Most issuers include a penalty clause that immediately terminates the promotional rate and reverts the entire balance to the standard (often higher) APR. A single missed payment can turn a great deal into an expensive mistake. Set up autopay for at least the minimum payment.
Can I transfer a balance to the same bank that issued my current card?
No. Balance transfers must move between cards from different issuers. Transferring a Chase balance to another Chase card, for example, is not permitted. You must open a card with a different bank that offers the promotional rate.
How does the transfer affect my credit score?
Opening a new card causes a hard inquiry (typically a small, temporary dip) and lowers your average account age. However, if the new card's limit reduces your overall utilization rate, that factor often improves your score within a few months. The net effect varies by individual credit profile.