About the Balance Transfer Break-Even Calculator
Every balance transfer starts in the hole by the amount of its fee. This calculator shows how quickly the interest you avoid at the intro rate earns that fee back — and flags whether you break even comfortably before the intro period ends.
How it’s calculated
Interest avoided per month ≈ balance × (current APR − intro APR) ÷ 12. Break-even months = transfer fee ÷ interest avoided per month. If that's within the intro period, the transfer pays off.
Example calculation
On a $6,000 balance moving from 22.9% to 0% with a 3% fee ($180), you avoid about $115 of interest a month — breaking even in under two months.
Frequently asked questions
What does break-even mean here?
The point where the interest you've avoided equals the transfer fee you paid. After that, the transfer is saving you money.
Why does the intro period matter?
If you can't break even and clear the balance before the intro rate ends, the regular APR kicks in and can undo the savings. Breaking even well within the intro window is safest.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.