How Much Money Can a Balance Transfer Actually Save Me?

A balance transfer can save you money by shifting your high-interest debt to a credit card offering a low-to-0% introductory APR. Let's say you currently carry a $15,000 balance on a 29.99 APR credit card. If you move it to a credit card offering 0% 18-month introductory APR, you can save around $4,500 in interest charges (depending on the balance transfer fee).

When looking for a balance transfer card, check the length of the introductory period, the balance transfer fee and the interest rate that kicks in after the end of the promotional period.

To calculate how much you can save with a balance transfer, compare the interest you would pay if you keep using your existing card versus the cost of the balance transfer plus interest on the new card.

This balance transfer calculator tool calculates how much you can save if you pay your balance in full at the end of the intro period or if you pay a lower amount than our recommended monthly payment. It will also tell you how many months you’ll need to clear off your debt completely.

Here's how to use our calculator:

After entering these details, you’ll see how much interest you can save and how long you’ll need to pay off your balance completely.

When choosing a balance transfer credit card, get a 0% APR with a long introductory period. A longer period means you have more time to lower your balance without interest, which helps make your monthly payments more manageable. Some cards also extend a 0% intro APR on new purchases, which helps if you have a big purchase coming up.

Look for cards with low balance transfer fees to minimize the cost of moving existing balances. Some cards have a lower balance transfer fee if you move your debt within a certain period after account opening.

Another factor to consider is your credit score. Credit cards with the best balance transfer offers are available to people with good to excellent credit scores.

The goal of transferring credit card balances is to reduce the cost of borrowing, presumably so you can make progress on paying off your outstanding balances.

If you can pay off your balance within three months, a balance transfer is unlikely to be the best choice. The process can take anywhere from 2 days to 6 weeks. During this time, you're required to make minimum payments on your existing balances. Given the short payoff period, the fees and potential credit score impact, the math usually doesn’t add up for a balance transfer to be worthwhile.

On the other hand, if you need more time to pay off your debts than a 12- to 21-month introductory period, aren’t able to get approved for a card with a balance transfer offer or need a more manageable fixed monthly payment, a debt consolidation loan is likely a more suitable choice.

Whenever possible, you should do one balance transfer to wipe out multiple balances, especially if your balance transfer card has a high credit limit.

You can also do multiple balance transfers, but each transfer must be approved first. If transferring your balance means you need to get a new credit card, applying for this card can temporarily lower your credit score — every time you apply for a credit card, the lender checks your credit, and this check can slightly reduce your score. If your score drops, you might not get good offers for future transfers, and the amount you can save will not be as significant as the first balance transfer.

The same financial rules apply after you receive approval for a balance transfer. These rules include the fees you'll pay to transfer the balance, the interest rate you'll be charged and the time you have to pay off the transferred amount.

Determine whether you might benefit from a balance transfer after going through answers to other commonly asked questions about balance transfers on credit cards.