Is a Balance Transfer Worth It? How to Do the Math

Published October 12, 2026

Free tool: Balance Transfer Calculator→

A balance transfer moves debt from a high-interest credit card to a new card with a 0% or low introductory rate. Done well, it can save hundreds or thousands of dollars in interest. But there's usually a transfer fee, and the rate jumps when the promotion ends, so it pays to run the numbers first. This guide shows how, using the free Balance Transfer Calculator.

How a balance transfer works

1. You open a card with an introductory offer, for example 0% APR for 18 months.
2. You move your existing balance to it, paying a transfer fee, often 3% to 5% of the amount.
3. During the promotion, your payments go almost entirely to the debt instead of interest.
4. Any balance left when the promotion ends starts costing the card's regular rate.

Example: $6,000 at 24%

You owe $6,000 at 24% APR and can pay $300 a month.

If you keep the card: it takes 26 months to pay off and costs $1,739.24 in interest.

If you transfer to a card with a 3% fee ($180) and 0% for 18 months, then 24%:

• After 18 payments of $300, about $780 is still owed when the promotion ends.
• That remainder is cleared over the next few months at 24%, costing only about $30 of interest.
• Total cost: $209.62 ($180 fee + $29.62 interest), saving about $1,530.

Clear it before the promo ends

To avoid any interest at all, divide the balance including the fee by the promotional months: ($6,000 + $180) ÷ 18 ≈ $343.33 a month pays it off just as the 0% period ends.

When a balance transfer isn't worth it

• The fee outweighs the savings, for example on a small balance you could clear in a few months anyway.
• You'll keep spending on the old card. Moving a balance doesn't help if new debt replaces it.
• The promotional period is short compared with how long you need to repay.
• New purchases on the transfer card may not get the 0% rate, and payments may go to the promotional balance first.

Also note that applying for a new card involves a credit check, and transfers usually must be made within a set time after opening the account to get the promotional rate.

How to use the Balance Transfer Calculator

1. Open the Balance Transfer Calculator.
2. Enter your card balance, its current APR and your monthly payment.
3. Enter the offer: the transfer fee, the intro APR, the intro period in months and the APR after the intro period.
4. Read the results: how much the transfer saves (or costs), the cost if you keep the card, the cost with the transfer, the fee, the balance left when the promotion ends and the monthly payment needed to clear it within the promotion, with a chart comparing the two balances.

Frequently asked questions

Is a 0% balance transfer worth the fee?

Usually, if you'd otherwise pay high interest for many months. In the example, a $180 fee saves about $1,530 compared with keeping a 24% card.

What happens when the 0% period ends?

The remaining balance starts accruing interest at the card's regular rate. Plan to pay it off before then, or at least know how much will be left.

How do I calculate the payment to clear a balance transfer?

Add the fee to the balance and divide by the number of promotional months. $6,180 over 18 months is about $343 a month.