How to Calculate Your Balance Transfer Savings

Transferring a balance from a high interest credit card to a new Discover it card with a low introductory interest rate can reduce your interest charges and help you get out of debt faster.

Sounds good, right? A balance transfer can be a great tool for paying down debt. We’ll help you crunch some numbers to see how a balance transfer might work for you.

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Here are the numbers that go into your balance transfer calculation:

  • How much you want to transfer
  • Your current card’s annual percentage rate (APR)
  • Your new Discover it card’s introductory APR
  • The term for balance transfers
  • Your new card’s standard APR
  • The balance transfer fee

Now let’s calculate an example of how much you could save.

To start, we’ll estimate your savings by using some theoretical numbers. Let’s say you want to transfer $3,500 with a current APR of 16.15%—that’s the current national average. We’ll calculate savings based on a 0% Intro APR for 12 months, then a 11.99%-23.99 standard APR and a 3% transfer fee. To get a better idea of how much you could save, enter your transfer amount and current APR.

Your available credit will limit the amount you can transfer. Your savings may vary depending on your situation, your credit limit, and your offer. Your available credit will limit the amount you can transfer. This calculator is just a tool—it’s not a firm offer of credit.

$
%

Estimated Savings

$0
($0 per month for 12 months)

Pay Off Your Balance in

12
months

Interest and Fees

Current Card(s)

$0

Discover Card

$0

Your Monthly Payment: Edit Monthly Payment
$
Monthly payment needed to pay off balance within intro period: $0
Minimum Monthly Payment: $
How We Calculated This
Interest you would’ve paid (17% APR) $0
Interest with Discover during intro period (0% APR) $0
Interest with Discover after intro period (24.99% APR) $0
Transfer fee (3%) $0
Estimated savings $0

No estimated savings

With the current APR and monthly payment you entered, this offer won’t help you save money on interest. Try entering a higher APR or adjusting your monthly payment to see more savings.

Savings are estimated using the highest standard variable rate available. Your savings may be higher based on your standard variable rate.

These savings also assume you’re making the same monthly payment each month until your balance is paid off. Adjusting your monthly payment will impact your savings. To save the most on interest, you should plan on paying off your debt during the intro period. But even if you can’t pay off your full balance during the introductory period, you may still save on interest after paying your transfer fee, as long as the standard variable purchase APR of your new card is less than your current rate.

Ready to see how much you could save?

Apply for Discover it to see what balance transfer offers may be available to you.

Already a Discover cardmember? Log in to see your offers

Here are a few other factors to consider:

  • The goal of a balance transfer is to pay off existing debt and not add to it. However, in case of emergencies it’s important to know what the standard purchase APR is because it may be different from the introductory APR.
  • If you make one late payment on your new card you could lose your 0% APR and it may trigger the penalty APR.
  • If you are transferring a balance to an existing card and you usually pay for purchases in full each month to avoid interest, transferring a balance will change that. You will be charged interest on purchases unless you choose to pay your entire balance in full, including any transferred balances, by the first payment due date.

To determine the value of a balance transfer offer you need to pay close attention to the fine print. The savings you could achieve by making a balance transfer vary depending on your personal financial situation. To ensure you will be getting the best deal, take some time to compare offers and use this balance transfer calculator to determine how much you will save.

Discover card believes that consumers should be armed with the information they need to help them make informed credit decisions.

Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

  1. Information and interactive calculators are made available as self-help tools for your independent use and are intended for educational purposes only.
  2. Savings calculations assume interest accrues on transferred balance during and after the promo duration. The initial calculations assume the national average APR of 16.15% as of 12/01/17 according to CreditCards.com.
  3. For comparison purposes, we applied a fixed monthly payment calculation to the balance you entered until the balance is paid off.
  4. Assumes interest accrues over the duration of the intro period on the balances and APRs you provided and the offer details above.
  5. Assumes fixed monthly payments are made at the end of the billing period.
  6. Assumes no other existing balances or new transactions are made to the account.
  7. Assumes the daily balance method (including new transactions) is used.
  8. Your savings will vary.

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