A 0% balance transfer offer sounds like free money, but the transfer fee (usually 3-5% of your balance) and what happens when the promotional period ends both matter just as much as the headline rate. This calculator compares the real total cost of transferring against just staying where you are.
Why the fee matters more than people think
A 3% fee on a $5,000 balance is $150, added straight to what you owe before the promotional rate even starts working in your favor. On a short promotional period, that fee can outweigh the interest you’d save. This calculator adds the fee to your starting balance automatically, so the comparison already accounts for it.
What happens after the promo period ends
Most transfer offers revert to a normal, often high, APR once the promotional window closes. If you haven’t paid off the transferred balance by then, remaining interest resumes at that higher rate. Enter your realistic post-promo APR above rather than assuming you’ll have it fully paid off in time.
Frequently Asked Questions
Does a balance transfer hurt my credit score?
Opening a new card for the transfer involves a hard credit inquiry and a new account, both of which can cause a small, temporary dip. Your credit utilization on the new card also matters, transferring a large balance onto a card with a lower limit can spike your utilization ratio, which affects your score more than the inquiry does.
Can I transfer a balance to a card from the same bank?
Usually not. Most issuers don’t allow transfers between their own cards, since the promotional offer is meant to win business from a competitor. Check the specific card’s terms, this varies by issuer.
What if I can’t pay off the balance before the promo ends?
Whatever balance remains starts accruing interest at the post-promo APR, which is often higher than what you started with on your original card. This is exactly why the calculator above lets you enter a realistic post-promo rate, so you can see this scenario rather than assuming a best case.