Transfer vs Payoff Calculator
Should you transfer or just pay it off? Side-by-side breakeven.
Recommendation
TRANSFER
Transfer wins when your budget can clear the (balance + fee) within the promo period. Otherwise the post-promo APR can wipe out the savings.
A balance transfer moves debt from a high-APR card to a new card with a 0% intro rate for a set number of months. The catch is the transfer fee, usually 3% to 5% of the amount moved, charged up front. This calculator compares the total cost of transferring against the total cost of staying put and paying the balance down where it is.
The transfer wins when the interest you avoid during the 0% window is larger than the fee you pay to get there. If you can already clear the balance in a few months, the interest you would have paid is small and the fee may not be worth it.
Enter your balance, current APR, monthly payment, and the promo card's fee and intro length to see which path costs less and roughly when the two break even.
How this calculator works
The tool amortizes each path month by month. For the payoff path, it applies your current APR to the balance each month (monthly rate = APR / 12), subtracts your payment, and totals the interest until the balance hits zero. For the transfer path, it adds the transfer fee to the balance (fee = balance x fee%), then charges 0% during the intro months and your post-promo APR on anything left after the window closes. Breakeven is the point where cumulative cost of the transfer path drops below the payoff path: roughly, the transfer is worth it when interest saved during the promo (about balance x current monthly rate x promo months for a slowly-paid balance) exceeds the fee. Example: $6,000 at 22% APR costs about $110 in interest the first month alone, while a 3% fee is $180 one time, so a 15-month 0% transfer typically saves several hundred dollars.
What affects the number
- Transfer fee: 3% to 5% of the balance, added on day one. On $6,000 that is $180 to $300 before you save a cent.
- Promo length: a longer 0% window (12, 15, 18, 21 months) gives more time for payments to hit principal instead of interest.
- Your current APR: the higher it is, the more interest the 0% window saves and the easier the fee pays for itself.
- How fast you can pay: if you'll clear it in 2-3 months anyway, the interest avoided is small and the fee often isn't worth it.
- Post-promo APR: any balance left when the intro ends starts accruing at the new card's regular rate, which can be as high as the old one.
- New-card behavior: a transfer usually adds a hard inquiry and a new account, and most cards charge full interest on new purchases unless those also get 0%.
Frequently asked questions
Does a balance transfer hurt my credit score?
Opening the card adds a hard inquiry (usually a few points) and lowers your average account age. But moving debt to a card with a higher limit can cut your utilization ratio, which often helps more than the inquiry hurts. The net effect is usually small and temporary.
Is a balance transfer worth it if I can pay the debt off in a few months?
Often not. The transfer fee is charged up front regardless, while the interest you would have paid on a quickly-cleared balance is small. If you can realistically clear the balance in two or three months, paying it off directly may cost less than the fee.
What happens to the balance left when the 0% promo ends?
Any remaining balance starts accruing interest at the card's regular APR, which can be 20% or higher. A true 0% intro offer does not retroactively charge the skipped interest, but you should still aim to clear the full balance before the window closes.
Can I transfer a balance to a card from the same bank?
Usually no. Most issuers do not allow balance transfers between two cards from the same bank, so you generally need a card from a different issuer to move the debt.
This calculator provides general estimates for educational purposes only and is not financial advice. Your actual costs and credit outcomes depend on your specific card terms, issuer, and situation.