Is a 0% APR Balance Transfer Actually Cheaper?
Turn transfer fees and promo timelines into a real monthly payment.
Start here
If you ever wondered why 0% still feels expensive, you are not alone.
The belief vs the reality
The common belief is 0% means free. The reality is fees and promo deadlines create a real monthly cost.
Translate it into monthly numbers
- Convert the balance transfer fee into monthly dollars.
- Calculate the payment needed to finish before the promo ends.
- Compare that payment to your current monthly plan.
Mental model
Balance plus fee divided by promo months equals the required monthly payment.
Moment of clarity
Here is what actually matters: the monthly payment you must hit before the promo ends.
What to do next
Compare the required monthly payment for the promo period to your current payment.
Related calculators
This is where guessing stops and numbers start.
Key sections in this guide
Translate the fee into monthly dollars
- A 3% fee on a large balance is still real money.
- Spread the fee across the promo months to see the cost per month.
Calculate the payoff window
- Promo months define the payment you must hit to win.
- Missing that payment usually triggers higher interest later.
Compare to your current path
- If the required payment is not realistic, the transfer will not solve the problem.
Replace guesses with real numbers
- Run the payoff timeline with and without the transfer.
FAQ
What is a balance transfer fee in dollars?
Multiply the balance by the fee percentage to see the one-time cost.
What happens when the promo period ends?
Any remaining balance usually switches to a higher APR.
Does transferring lower my minimum payment?
It can, but the required payment to finish the promo is often higher than the minimum.
Can I keep using the card?
New charges can add interest immediately and make payoff harder.