{
  "slug": "balance-transfer-breakeven",
  "title": "Balance Transfer Break-Even Calculator",
  "heading": "Balance Transfer Break-Even Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/balance-transfer-breakeven",
  "summary": "Check whether the transfer fee is cheaper than the interest you'd otherwise pay.",
  "description": "A 0% balance transfer is not free — the fee is charged up front, typically 3-5% of the amount moved, and the promotional rate expires on a fixed date. The transfer wins when the interest avoided during the promo exceeds the fee, and it wins decisively only if the balance is actually clear before the revert rate kicks in. This calculator compares three numbers: the fee, the interest you would pay staying put, and the balance you would still owe when the promo ends at your planned payment. That last figure is the one most people miss.",
  "formula": "Fee = balance × fee %. Interest avoided = interest on the current card over the promo window at your payment. Remaining at promo end = balance + fee − (payment × promo months).",
  "dateModified": "2026-08-25",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=balance-transfer-breakeven",
  "inputs": [
    {
      "id": "balance",
      "label": "Balance to transfer",
      "kind": "number",
      "hint": null,
      "default": 7000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "currentApr",
      "label": "Current card APR",
      "kind": "number",
      "hint": null,
      "default": 23.9,
      "unit": "%",
      "min": 0,
      "max": null
    },
    {
      "id": "fee",
      "label": "Transfer fee",
      "kind": "number",
      "hint": null,
      "default": 3,
      "unit": "%",
      "min": 0,
      "max": 10
    },
    {
      "id": "promoMonths",
      "label": "Promotional 0% window",
      "kind": "number",
      "hint": null,
      "default": 18,
      "unit": "months",
      "min": 1,
      "max": null
    },
    {
      "id": "payment",
      "label": "Monthly payment you'll make",
      "kind": "number",
      "hint": null,
      "default": 350,
      "unit": "$/mo",
      "min": 1,
      "max": null
    },
    {
      "id": "revertApr",
      "label": "Rate after the promo ends",
      "kind": "number",
      "hint": null,
      "default": 24.9,
      "unit": "%",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "netSaving",
      "label": "Net saving vs staying put",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "fee",
      "label": "Transfer fee charged up front",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "stayInterest",
      "label": "Interest if you don't transfer",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "remaining",
      "label": "Balance left when promo ends",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "paymentToClear",
      "label": "Payment needed to clear in the window",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "postPromoInterest",
      "label": "First month's interest after revert",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Balance to transfer: 7000 $",
      "Current card APR: 23.9 %",
      "Transfer fee: 3 %",
      "Promotional 0% window: 18 months",
      "Monthly payment you'll make: 350 $/mo",
      "Rate after the promo ends: 24.9 %"
    ],
    "outputs": [
      "Net saving vs staying put: $1,584.25",
      "Transfer fee charged up front: $210.00",
      "Interest if you don't transfer: $1,794.25",
      "Balance left when promo ends: $910.00",
      "Payment needed to clear in the window: $400.56",
      "First month's interest after revert: $18.88"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter balance to transfer ($).",
      "Enter current card apr (%).",
      "Enter transfer fee (%).",
      "Enter promotional 0% window (months).",
      "Enter monthly payment you'll make ($/mo).",
      "Enter rate after the promo ends (%).",
      "Read your net saving vs staying put on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "balance": 4200,
        "currentApr": 14.339999999999998,
        "fee": 1.7999999999999998,
        "promoMonths": 11,
        "payment": 210,
        "revertApr": 14.939999999999998
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "balance": 7000,
        "currentApr": 23.9,
        "fee": 3,
        "promoMonths": 18,
        "payment": 350,
        "revertApr": 24.9
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "balance": 11200,
        "currentApr": 38.24,
        "fee": 4.800000000000001,
        "promoMonths": 29,
        "payment": 560,
        "revertApr": 39.84
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What if I can't clear the balance in the promo window?",
      "a": "The leftover balance starts accruing at the revert rate, which is often higher than the card you left. The transfer can still be worth it — you had free months — but check the 'payment needed to clear' figure and treat it as the real target, not the minimum."
    },
    {
      "q": "Does a balance transfer hurt my credit score?",
      "a": "There is a short-term dip from the new account inquiry, but a transfer that lowers overall utilisation typically helps within a few months. Keep the old card open and unused — closing it reduces available credit and pushes utilisation back up."
    },
    {
      "q": "Can I transfer more than once?",
      "a": "Serial transferring works until issuers stop approving you, and each hop costs another fee. Treat the first transfer as a fixed-length window to actually eliminate the debt rather than as a renewable arrangement."
    },
    {
      "q": "Do new purchases get the 0% rate too?",
      "a": "Often not. Many cards apply the promotional rate only to transferred balances while purchases accrue at the standard rate, and payment allocation rules can leave the purchase balance sitting there earning interest. Use a different card for spending during the promo."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/credit-card-payoff",
    "https://www.revenuelab.fyi/toolbox/debt-avalanche-vs-snowball",
    "https://www.revenuelab.fyi/toolbox/refinance-breakeven-months"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Balance Transfer Break-Even Calculator (https://www.revenuelab.fyi/toolbox/balance-transfer-breakeven)"
}