Scope
New purchases are excluded.
The comparison isolates one transferred balance. Purchases, cash advances, missed-payment penalties and different payment-allocation rules can change the result.
Credit card comparison
Balance Transfer Calculator
Compare keeping a card balance with transferring it to a promotional rate, including the transfer fee and post-promotional rate.
Modeled cost savings—
Transfer fee—
Balance after promotion—
Keep the balance
Payoff time—
Interest cost—
Fee plus promotional rate
Payoff time—
Interest plus fee—
Time saved—
—
—
Calculation order
The model adds the fee to the transferred balance, applies the promotional APR for the selected months, then applies the post-promotional APR until payoff.
Decision point
The remaining balance at promotion end matters.
A transfer can look inexpensive during the introductory period but become costly if a large balance remains when the standard rate begins.
Sources
Promotional rates are temporary.
The CFPB advises borrowers to know the rate after the promotional period and defines a balance-transfer fee as a flat fee or percentage charged when moving a balance.