Balance Transfers: The Payoff Math

The headline rate means nothing without the fee, the window, and your payment The headline rate means nothing without the fee, the window, and your payment

The only formula you need

Required payment = (balance + transfer fee) ÷ intro months. If that payment does not fit your budget, the transfer does not work. Required payment = (balance + transfer fee) ÷ intro months. If that payment does not fit your budget, the transfer does not work.

$6,000 + a 3% fee

Hypothetical example: the fee is $180, so you repay $6,180 — the fee is added to what you owe, not forgiven. Hypothetical example: the fee is $180, so you repay $6,180 — the fee is added to what you owe, not forgiven.

$515 a month for 12 months

At a hypothetical 0% intro APR, $6,180 ÷ 12 = $515 a month clears it inside the window. At a hypothetical 0% intro APR, $6,180 ÷ 12 = $515 a month clears it inside the window.

About $720 saved

Staying put at a hypothetical 24% APR with the same $515 would take about 14 months and roughly $900 interest. The transfer saves about $720 and finishes 2 months sooner. Staying put at a hypothetical 24% APR with the same $515 would take about 14 months and roughly $900 interest. The transfer saves about $720 and finishes 2 months sooner.

Pay $400 instead? $1,380 left over

Underpay and $1,380 remains when the intro ends — then it accrues interest at the regular APR, which can erase the saving. Underpay and $1,380 remains when the intro ends — then it accrues interest at the regular APR, which can erase the saving. Read the full guide