Balance Transfer Breakeven Tool
Balance Transfer Calculator — Breakeven Point
What this calculator does
This calculator compares the interest you would pay on your current card against the transfer fee on a 0% promo card. It shows the breakeven point.
The math, with a worked example
Monthly interest = balance × APR ÷ 12. Transfer fee = balance × fee %. Breakeven months = transfer fee ÷ monthly interest. When that lands inside the promo term, the tool reports a year of interest saved. A $5,000 balance at 24.99% accrues $104.13 of interest a month, so a 3% transfer fee of $150 is repaid in about 1.4 months. That clears a 15-month promo easily, and the tool reports $1,249.50 of interest saved over a year.
Why this matters
A balance transfer is a fee paid to stop a meter: $150 to move $5,000 out of a card charging $104 a month. Breakeven lands in about 6 weeks, and every promo month after that is interest that never happened — if the balance actually shrinks during the promo.
Methodology and transparency
Breakeven months = transfer fee ÷ (balance × old APR ÷ 12); savings run through the promo term. The model's silent assumption is discipline: keep charging on the old card or make only minimums on the new one and the promo expires into the same trap with a fee added. The transfer buys time, not payoff. Everything runs in your browser; no data is sent or stored.
Last reviewed: 2026-08-08
Common questions
When is a balance transfer worth it?
When the transfer fee is much smaller than the interest you would pay during the promo period.
What if I do not pay off the balance during the promo?
Any remaining balance may be charged the new card's regular APR, possibly wiping out your savings.
Are there hidden fees?
Some cards charge annual fees or retroactive interest if the balance is not paid in time. Read the terms.