Using a balance transfer calculator
Balance transfer calculators show you how much money you can save with a balance transfer. They compare how much you'll pay in interest fees with your existing card versus a balance transfer credit card.
To use this balance transfer calculator, you'll need the following information:
- How much you want to transfer: This may be the balance from a single credit card, or it may be balances from several cards.
- Your current interest rate: The interest charges you pay are based on your card's APR. You can find your current APR listed in your card's rates and fees documentation or in your online account.
- The interest rate on your new card: To figure out what you could save in interest fees, you'll need the APR for the balance transfer credit card. This will be listed in the rates and fees documentation. Some cards will charge a different APR for balance transfers than they do for purchases. So, make sure you input the correct balance transfer rate. (The best cards to use for this have intro 0% APR balance transfer offers.)
- Applicable fees for the new card: Many credit cards charge a balance transfer fee. These fees are commonly 3% to 5% of the total transferred amount.
- Your monthly payment amount: Our balance transfer calculator will show the cost and time to pay off debt using your minimum payment amount. But you can put in a different amount if you plan to pay more than your minimum required payment. (If you'd like to see how your payment amount affects your credit card debt, try using a credit card interest calculator.)
Once you input the relevant data, the calculator will show you a cost comparison of the two cards. If you haven't chosen a balance transfer card yet, you can try different APR and fee amounts to see which card will work best.
You can also compare credit cards to see side-by-side comparisons of popular balance transfer credit cards to help you make your choice. When you've chosen a card, just click "Apply Now" to start the application process.
What is a balance transfer credit card?
A credit card balance transfer is when you move the existing balance from one credit card account to another card account. Although you can't pay your credit card bill with a different credit card, you can effectively do a credit card transfer by shifting your credit card debt from one card to another.
Cards that will accept a balance transfer from another account are called balance transfer credit cards. Not all credit cards will accept balance transfers.
The simplest way to see if a card accepts balance transfers is to look for a balance transfer APR listed in the card's rates and fees table. Many balance transfer credit cards will charge the same interest rate for balances from both purchases and transfers, while others will charge a slightly higher rate for transferred balances.
For a balance transfer to be worthwhile, you'll want to transfer your balance to a low interest credit card or at least one with a lower APR than is charged by your current card. Otherwise, you won't save money on interest fees and the balance transfer will be pretty useless.
The very best 0% balance transfer credit cards will offer intro APR deals that provide 0% interest on transferred balances. These balance transfer offers are good for a set period of time after opening a new account. (You may also receive occasional lower APR offers on your existing credit cards, but these are less common and hard to predict.)
You can typically initiate a credit card balance transfer while applying for a new card. Alternatively, you can perform a balance transfer online once your card account has been opened. You'll need to specify the account from which you want to transfer your existing balance, as well as how much you want to transfer.
Once you initiate the transfer, it can take several days for the debt to move from one account to another. If the due date for your outstanding balance occurs before the transfer is completed, be sure to make at least your required minimum payment to avoid late fees or other issues.
Learn more: How to transfer credit card balance
RELATED: If you have debt, you should learn about the snowball method. Check out this debt snowball calculator.
What is a balance transfer fee?
Nearly all credit cards that accept balance transfers will charge a fee for the transaction, called a balance transfer fee. Most balance transfer fees range between 3% and 5% of the total transaction amount. For example, if you transfer $5,000 to a credit card with a 5% balance transfer fee, you will be charged a $250 fee for the transaction.
Some balance transfer credit cards will include a reduced balance transfer fee as part of its introductory APR offer. In most cases, you'll need to make the transfer within a set period of time -- often the first 90 days -- to be eligible for credit card balance transfer offers.
Is there a limit to how much you can transfer?
Balance transfer credit cards typically have limits on how much you can transfer. This limit may be the same as your overall credit limit, but some cards will have a specific balance transfer limit.
One thing to note is that the balance transfer limit will include your balance transfer fee. So, if you want to transfer a $5,000 balance to a card with a 5% transfer fee, you'll need to have a transfer limit of at least $5,250 on the balance transfer card.
Additionally, this limit applies to your total balance from all transfers; it is not a per-transaction limit. For instance, if you transfer $1,000, then later transfer another $1,000, you will need a card with a transfer limit of at least $2,000.
Who can benefit from a credit card balance transfer?
The cardholders most likely to save with a balance transfer credit card are those who can qualify for an intro 0% APR deal. The lower interest rate will mean more of your monthly payments go toward paying down your outstanding balance, rather than paying interest fees.
In general, you'll need good credit to qualify for a credit card with an intro APR offer. The best balance transfer cards with the longest introductory periods will require good or excellent credit.
If you can't qualify for a 0% APR balance transfer card or one with a low interest rate, or if you just can't get a card with a high enough transfer limit, you may want to consider consolidating debt with a personal loan. Personal loans tend to have lower interest rates than most credit cards, which can help you reduce your monthly interest payments. Check out our guide to choosing between a balance transfer or personal loan.
How to choose a balance transfer credit card
There are several factors to consider when looking for a balance transfer credit card:
- An introductory APR offer: Good balance transfer cards come with an introductory 0% APR on transferred balances of at least six months. The best intro 0% APR credit cards will give you 15 months or more of 0% interest before reverting to the standard interest rate.
- The balance transfer fee: Most cards will charge a transfer fee of 3% to 5% of the total transaction amount. However, some cards will provide a reduced rate as part of an introductory offer.
- The balance transfer limit: Some cards will let you transfer up to your total credit limit, while other cards will cap balance transfers at a lower amount. (Unfortunately, you won't be able to determine your balance transfer limit until after you are approved for the card.)
- The annual fee: Most balance transfer cards we've seen have no annual fee, but you should always check the terms and conditions to make sure.
Using our balance transfer calculator can help you figure out what kind of APR and fee structure you might need to save the most money. This will narrow down your card options and make it easier to compare balance transfer credit card offers.
