How Much Can You Save With a Balance Transfer?
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Written by
Michelle Lambright Black
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Edited by
Jasmin Baron, CCC™
Credit card interest can become expensive in a hurry, especially if you carry a balance for more than a few months. The average credit card balance grew to $6,735 in June 2025, and average annual percentage rates (APRs) increased to around 22%, according to Experian.
The combination of higher credit card balances and interest rates can make it difficult to pay down credit card debt. But a balance transfer can help create some breathing room by pausing interest and letting more of your payment go toward the balance itself.
So, how much can you save with a balance transfer? Let’s look at how to calculate your potential savings and explore the best balance transfer credit cards for your financial needs.
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How To Calculate Interest Savings With a Balance Transfer
I’ve experienced the relief a balance transfer provides firsthand. Like many people, I’ve carried credit card debt in the past. My debt didn’t happen overnight, and I didn’t get out of debt overnight either. Balance transfers played a key role in helping me pay down high-interest credit card debt faster and at a much lower cost than sticking with a standard APR.
Of course, the best way to use credit cards is to pay your full balance every month and avoid interest charges altogether. However, real life doesn’t always work out that way. If you experience hardship, make budgeting missteps or choose to carry a balance for a short period, a balance transfer credit card could offer a smarter path forward.
When you use a balance transfer responsibly, it has the potential to significantly reduce the amount of money you spend on interest. Still, before you apply, it’s wise to calculate your potential savings — especially if you want to compare multiple payoff strategies or decide whether a balance transfer makes sense for your situation.
To estimate your savings, you need four key details:
- Your current credit card balance or balances
- Your current APR or APRs
- The length of the introductory APR period
- The balance transfer fee
Once you have the information you need, you can calculate how much credit card interest you would pay with and without a balance transfer. The difference between the two scenarios is your possible savings.
Example: Balance Transfer Savings Scenario
Every balance transfer consolidation is different. Here’s a hypothetical case of how to calculate the potential interest savings with a balance transfer offer.
Let’s use the Citi Double Cash® Card, an advertising partner, as our example balance transfer card. It offers a 0% Intro APR on balance transfers for 18 months, then 17.49% - 27.49% (Variable). A 17.49% - 27.49% (Variable) APR will apply for purchases. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
| Scenario | No Balance Transfer | With Balance Transfer |
| Starting Balance | $6,000 | $6,000 |
| APR | 22% | 0% intro APR for 18 months on Balance Transfers |
| Monthly payment | $400 | $400 |
| Balance transfer fee | $0 | $180 (3%) |
| Interest paid | $1,081 | $0 |
| Total cost | $1,081 | $180 |
| Number of payments (if no additional charges occur) | 18 | 18 |
| Estimated savings | $0 | $901 |
This kind of math explains how balance transfers helped me make meaningful progress toward reducing my past credit card debt. When interest stops piling up (and new charges stop at the same time), every payment can have a bigger impact on your debt payoff journey.
Cost of a Balance Transfer
Most balance transfer cards charge a balance transfer fee, usually between 3% and 5% of the amount you move. In the example above, transferring $6,000 with a 3% fee adds $180 to the overall balance right away. That upfront cost matters, but it’s often far less than the interest you avoid when you pause a high APR for a year or longer.
What matters most is the relationship between the balance transfer fee and the interest savings. If you plan to pay down the balance steadily during the promotional period (and avoid new debt), the fee can act like a one-time investment that replaces months or years of compounding interest. That trade-off worked in my favor when I used balance transfers to escape high-interest debt. It’s also important to ensure the interest savings outweigh the overall cost, as in the example above.
Timing matters too. Issuers usually require you to complete a balance transfer within a set period after you open a new account, typically 60 to 120 days. If you miss that window, you may miss out on a special promotional rate.
How Much Would It Cost if You Didn’t Do a Balance Transfer?
High APRs can drag out the debt repayment process for months or years. Credit card interest typically compounds daily, which means balances usually shrink slowly even if you make steady payments.
For example, a card with a $6,000 balance at a 22% APR with a $400 monthly payment can generate close to $1,100 in interest over an 18-month period, assuming you don’t add new charges. This is where balance transfers can make a noticeable difference in your debt payoff plan if you use them wisely.
Moving balances off high-interest credit cards can help shorten the payoff timeline and reduce the amount of money that disappears into interest charges. The exact cost of skipping a balance transfer depends on your balance, APR and payment habits. Still, if you can’t repay your credit card balance quickly, a balance transfer often deserves consideration as a debt payoff strategy.
What To Look For in a Balance Transfer Card
Not all balance transfer cards work the same way, and the details matter. The best balance transfer credit card for you depends on how much debt you want to move, how quickly you plan to pay it off, and how much risk you can tolerate if a balance remains after the promotional period.
When you compare balance transfer cards, focus on the following core features:
- Length of the introductory APR period: Longer promotional periods give you more time to pay down debt without interest pressure. Cards like the Wells Fargo Reflect® Card and U.S. Bank Shield™ Visa® Card fit into this category. Many strong balance transfer cards offer promotional periods of 18 to 24 months, which can make a big difference if you need time to chip away at a larger balance.
- Balance transfer fee: Most card issuers charge a fee between 3% and 5% of the amount you transfer. A lower fee increases your savings potential, especially if you plan to pay off the balance sooner during the promotional period. Cards like the Citi Simplicity® Card (an advertising partner) and the Citi Double Cash Card stand out here with 3% fees.
- Regular APR after the promo ends: If you carry a balance beyond the introductory period, your new credit card’s ongoing APR matters. A lower post-promotion APR reduces the cost of any remaining balance and gives you more flexibility if your payoff timeline changes. But your best bet is to repay your full debt during the promotional period and to repay any money you borrow from your card issuer each month moving forward.
- Issuer rules and eligibility: Most credit card companies don’t allow balance transfers between cards from the same issuing bank. You typically have a limited amount of time to process introductory balance transfers after you open a new account. Going over card terms and card reviews can help you avoid applying for an offer that won’t work for your situation.
Frequently Asked Questions About Balance Transfers
How much can you save with a balance transfer?
Your potential savings with a balance transfer depend on the amount of debt you plan to transfer, the promotional APR and payoff speed. Many borrowers can save hundreds or even thousands of dollars by avoiding interest during the introductory period, even after factoring in the balance transfer fee.
Does a balance transfer hurt your credit score?
If you apply for a new balance transfer credit card, you might see a small credit score dip from the new account and hard credit inquiry. However, if you qualify for a new account and use it to reduce your credit utilization ratio, it could improve your score over time.
Can you transfer a balance between cards from the same issuer?
You typically cannot transfer unpaid balances between two accounts from the same credit card issuer. For example, Citi doesn’t allow transfers between two Citibank accounts.
What happens if you don’t pay off the balance before the promotional period expires?
Any remaining balance on your credit card account will begin to accrue interest at the regular APR once the promotional period ends. As a result, it’s critical to plan your payments from day one of your balance transfer to make the most of your savings potential.
