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Years ago, one of my closest friends found himself staring down about $30,000 in credit card debt. He was juggling multiple cards, paying 20%+ interest, and was extremely overwhelmed.
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Then he discovered balance transfer credit cards.
He moved chunks of high-interest debt onto a card with 0% intro APR — and became obsessed with paying off the balance. That simple move saved him over $8,700 in interest, and he climbed fully out of debt in under two years.
Balance transfer cards can be a financial life saver. The amount you can save depends on a few factors. Here’s how to figure out the math.
What a balance transfer really saves you
Many balance transfer cards offer 0% intro APR for 12 to 21 months, giving you breathing room to pay down the balance faster.
But there are a few factors that affect how much you actually save:
- Your current interest rate
- The size of your balance
- How much you can afford to pay each month
- The length of the 0% intro APR period
- Balance transfer fees (usually 3% to 5%)
So while balance transfers can save you hundreds (or even thousands), the exact number depends on your personal situation.
Example: Save $1,500+ on a $7,000 balance
Let’s say you’ve got $7,000 in credit card debt at a 22% APR, and you’re currently paying $350 per month toward the balance.
If you keep that schedule and don’t add any new charges:
- You’ll be debt-free in about 26 months
- And you’ll pay roughly $1,799 in interest
Now let’s say you move that balance to a 0% intro APR card for 18 months with a 3% balance transfer fee (that’s $210 upfront).
- You keep paying $350/month (which all goes directly towards principal)
- The balance is gone in just under 21 months
- And you only pay $210 total — no interest at all
The total savings is $1,589, even after the balance transfer fee.
Plus, you’d be debt-free five months sooner.
Some balance transfer cards offer up to 21 months with 0% intro APR, which gives you even more time to crush your debt without interest piling up. Check out the top-rated balance transfer cards here.
How to calculate your own savings
Here’s a helpful online balance transfer calculator that does all the math for you.
Just plug in your current balance, interest rate, monthly payment, and the details of whichever balance transfer card you’re looking at.
It’ll compare your current payoff timeline and interest, vs. how much a balance transfer card will save you.
Once you’ve got your estimate, you’ll be in a great spot to decide if it’s worth applying for a new card.
Choosing the right balance transfer card
It’s tempting to simply choose a card with the longest 0% intro APR period. That’s not a bad strategy, but it’s not always the best fit for everyone.
Some long 0% intro APR cards come with higher balance transfer fees or stricter approval requirements. Others may offer a slightly shorter intro window but lower fees, or a 0% intro APR on new purchases as well.
The best balance transfer card is the one that fits your goals. If your top priority is speed, a lower fee might save you more. If you need extra time to pay it off, a 21-month window could save you the most.
Compare all the best 0% intro APR card options and find the right card for your plan.
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