If so, you are in the right place! Get started by entering your personal confirmation number below.
Received an offer from us?
If so, you are in the right place! Get started by entering your personal confirmation number below.
Leaving SoFi Website
You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
A credit card balance transfer can be a smart financial move. It can allow you to take a credit card balance from a card with a high interest rate and move it to one with a lower rate. Some cards also allow you to have an introductory period where you will have a 0% APR for a period of time. That can provide you with time to pay down your balance without any additional interest accruing.
Using a credit card balance transfer calculator can help you to determine if a balance transfer makes sense for you and which offer is best.
Key Points
• A balance transfer calculator estimates savings and the financial impact of moving your credit card balance to a new card with a 0% introductory rate.
• Potential savings depend on balance, interest rates, and fees.
• Benefits can include better financial management and credit score improvement.
• It’s wise to aim to pay off the balance before the introductory period ends.
• Compare offers from various lenders to find the best deal, paying attention to fees, the length of the introductory period, and the subsequent interest rate.
Calculator Definitions
Here are some terms to know before using the credit card balance transfer calculator:
• Current balance: The current amount owed on your credit card.
• Interest rate: The interest percentage charged by your current credit card. You may see this called the Annual Percentage Rate or APR. On a balance transfer card, this is often 0% for the introductory period.
• Balance transfer fee: The fee charged to do a balance transfer to a new credit card. You may find that 3% to 5% of the balance being moved is a common balance transfer fee on many cards.
• Introductory period: The number of months where you will have a 0% introductory APR.
• Amount saved: The amount of money you will save on this balance transfer, given the inputs provided.
How to Use the Credit Card Balance Transfer Calculator
Our credit card balance transfer calculator helps you determine how much you can save with a credit card balance transfer.
Step 1: Enter Your Current Balance
In this step, you’ll type in your current balance, which can be found by checking for the amount on your credit card’s website or in the app. Or if you get paper statements, look there, taking into account any recent purchases or payments.
Step 2: Add Your Interest Rate
Using the same sources noted above, find and enter your interest rate.
Step 3: Type in Your Balance Transfer Fee
As noted above, this is often a fee of 3% or 5% of the amount being transferred. Check your offer to find the exact amount.
Step 4: Input the Introductory Period Length
Introductory periods, or the length of time when you pay no interest, can vary. Eighteen to 21 months tend to be at the longer end of the range. You’ll add that number to the credit card balance transfer calculator.
Step 5: See How Much You Can Save
The calculator will now provide an estimate of how much money you could potentially save with a balance transfer. It factors in the transfer fee to show your net savings. If you are working on lowering your credit card utilization, a balance transfer may be an attractive option. It can provide a period of time in which interest doesn’t accrue, so you can focus on paying down the amount you owe.
Benefits of Using a Credit Card Balance Transfer Calculator
A credit card balance transfer calculator can be useful since it gives you an idea of how lucrative a balance transfer could be for your specific situation. While you might not want to go through the hassle of a balance transfer (especially if it means having to open a new credit card) for $50 savings, you might be more willing to endure a little bit of hassle for $500 or $1,000 in savings, for example.
If you do opt for a balance transfer, it can help you build credit by lowering your overall balance or helping you to pay down debt faster.
If you are using a credit card balance transfer to positively impact your credit score, know that it will likely take several monthly cycles of on-time payments to see a benefit. It may take a bit of patience as you monitor your credit score.
How to Use Credit Card Balance Transfer Calculator Data to Your Advantage
Using a credit card balance transfer calculator can help you decide whether a balance transfer makes sense for you. There are only a few simple inputs to the calculator, including the total balance you’re thinking of transferring and your current interest rate.
Having a large credit card balance can affect your credit score, so it can make sense to try to lower your credit card balance. Once you enter the relevant information into the calculator, it will give you an approximate idea of how much money you could save with a balance transfer. You can also try different inputs or scenarios to see how those could change your outlook.
A credit card balance transfer involves taking the balance on one credit card and transferring it to another credit card. Typically, a credit card that has a balance transfer promotion will offer an introductory period (such as 12 or 18 months) where you have an introductory 0% APR. Many balance transfer credit cards also charge a balance transfer fee (often 3% to 5% of the amount transferred). A balance transfer calculator can help you take all of these variables and decide how much money a balance transfer might save you.
Types of Credit Cards with Balance Transfers
There are many different kinds of credit cards that offer balance transfers. As you compare credit cards, you may want to look for ones that offer a 0% introductory balance transfer period and try to find as long a period as possible. Make sure to read the fine print for such details as how much the balance transfer fee is, what happens if you don’t pay off your balance by the end of the introductory period, and what interest rate you will be charged once the no-interest period is over.
Examples of Credit Card Balance Transfer Scenarios
Here are a few examples of credit card balance transfer scenarios:
Example 1:
• Current balance: $5,000
• Interest rate: 18%
• Balance transfer fee: 3% ($150)
• Introductory period: 12 months
Amount saved (after deducting transfer fee): $351
Example 2:
• Current balance: $12,000
• Interest rate: 24%
• Balance transfer fee: 3% ($360)
• Introductory period: 18 months
Amount saved (after deducting transfer fee): $2,048
Credit Card Balance Transfer Tips
One of the biggest credit card balance transfer tips is to make sure that you have a plan in place to fully pay down your balance before the end of the introductory period. That way, you can take advantage of the no-interest period and offset any fees you’ve paid. You can use a spending app to help you stick to a budget and live within your means.
Another balance transfer tip is to compare offers from different balance transfer credit cards. Different cards might offer different introductory 0% APR periods or have different balance transfer fees, rewards, and benefits. In addition, the interest rate they charge once the introductory period ends will vary. Comparing the details of different balance transfer credit cards can help you decide the right one for you.
The Takeaway
A credit card balance transfer can make financial sense but only in certain situations. Using this credit card balance transfer calculator can help you decide if this kind of transfer is right for you and, if so, which offer is best for your situation. Simply enter your credit card balance, interest rate, balance transfer introductory period, and balance transfer fee amount, and the calculator will give you an idea of how much a balance transfer could save you. Beyond interest savings, a credit card balance transfer can help you build credit.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights—all at no cost.
See exactly how your money comes and goes at a glance.
How does a balance transfer calculator show my potential savings?
A balance transfer calculator can take your information (credit card balance, interest rate, balance transfer fee, and length of your introductory 0% APR period) and give an estimate of how much a balance transfer could save you. It saves you the effort of doing the math, and it allows you to quickly and easily compare offers.
What is a balance transfer fee, and how is it factored into the calculation?
Many balance transfer credit cards charge a balance transfer fee. This balance transfer fee can vary from card to card, but is often around 3% to 5% of the total balance being transferred. The balance transfer fee is added to your total balance, and reduces the overall amount you save. The balance transfer calculator takes the amount of the balance transfer fee into account when estimating your potential savings.
Does the calculator account for the interest rate on my existing credit card?
Yes, this balance transfer calculator accounts for a number of different factors, including the interest rate on your existing credit card. You can use different values for the inputs on the credit card balance transfer calculator to see how they affect your savings estimate.
Is the estimated payoff date from the calculator a guaranteed date?
No, this credit card balance transfer calculator does not provide a guaranteed savings amount. Instead, the actual amount that you save and the date that you pay off your existing credit card balance will depend on a number of different factors, including how much money you put toward your balance each month.
How does a balance transfer affect my credit utilization ratio and my credit score?
A balance transfer itself will not likely have a huge impact on your credit utilization ratio or credit score. This is because at the start, when you make the balance transfer, you still have the same amount of total debt. However, a balance transfer may make it easier to pay down your debts and lower your total utilization ratio, since you will not be charged interest during the introductory period. If this is the case, you should be able to lower your credit utilization and build your score over time.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
SORL-Q325-024
