Intergtm

Balance Transfer Break-Even Calculator

Compare the cost of a balance transfer (fee + promo rate) against paying down your current card.

Inputs

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Results update as you type, and the address bar keeps your numbers so the link you share reopens this exact calculation.

Interest saved with transfer

$1,005

Transfer saves money.

Detailed results
Balance transfer fee$150
Payoff time (current card)21
Payoff time (after transfer)18
Total interest on current card$1,081

What this result means

Interest saved with transfer: $1,005.

Transfer fee is $150. Interest saved is $1,005. Net benefit: $855.

Month-by-Month Comparison

Balance and interest paid each month on both paths.

Month-by-Month Comparison. 21 rows, first 12 shown.
MonthCurrent Card BalanceTransfer BalanceCurrent Card InterestTransfer Interest
1$4,796$4,850$95.79$0.00
2$4,588$4,550$91.88$0.00
3$4,376$4,250$87.89$0.00
4$4,159$3,950$83.83$0.00
5$3,939$3,650$79.69$0.00
6$3,715$3,350$75.47$0.00
7$3,486$3,050$71.16$0.00
8$3,252$2,750$66.78$0.00
9$3,015$2,450$62.31$0.00
10$2,773$2,150$57.76$0.00
11$2,526$1,850$53.12$0.00
12$2,274$1,550$48.39$0.00

How this is calculated

Simulate payoff on current card (fixed APR). Simulate payoff after transfer (promo rate for N months, then post-promo APR). Compare total interest paid.

A balance transfer moves your debt from a high-APR card to a 0% promo card, typically for 6–18 months. You pay an upfront fee (1–3%) to transfer, but save on interest during the promo period.

The math. Transfer fee is a sunk cost, but the interest saved during the promo period often exceeds the fee. After the promo ends, the new card's APR kicks in—which can be higher than your current card's APR.

Breakeven analysis. You break even when the interest saved (vs. your current card) exceeds the transfer fee. This usually happens within 3–6 months for high-APR cards.

Dangers. Transferring only makes sense if: (1) you pay down the balance during the promo period, (2) you won't close the old card (which hurts your credit), and (3) you don't rack up new debt on the old card. Many people transfer, then re-borrow—undoing the savings.

Pro tip. Use the 0% period to aggressively pay down principal. Every dollar you pay toward principal saves interest at both your old APR and the post-promo APR.

Assumptions

  • Monthly payment is fixed and constant throughout.
  • Promo rate is held for the stated number of months, then post-promo APR applies.
  • Transfer fee is paid upfront and added to the transferred balance.
  • No new charges added to either card during payoff.
  • Simulation runs up to 600 months; assumes payoff within reasonable time.

Frequently asked questions

›Should I transfer if it takes 6 months to break even?

Yes, if you break even in 6 months and have a 12-month promo, you save 6+ months of interest. Even a $200 savings is worth 30 minutes of paperwork.

›Does a balance transfer hurt my credit?

Temporarily yes—a new account inquiry and new account slightly lower your score. But your credit mix improves (installment + revolving), and after 6 months the benefit outweighs the hit.

›What happens if I don't pay off during the promo?

Any remaining balance accrues interest at the post-promo APR (often 18%+). You're worse off than if you'd stayed on your original card. Use the promo period to pay down, not just switch.

›Can I do multiple balance transfers?

Yes, but each inquiry and new account can hurt your credit. After 2–3 transfers in a short window, card issuers may deny you. Use this strategy sparingly.

›Is it better to transfer or pay down aggressively?

Transfer if the fee + post-promo interest < interest on current card. Aggressively pay either way—the 0% period buys time and reduces the psychological burden of high interest.

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