Balance transfer fee explained

Last updated: 2026-08-14

A balance transfer can lower interest during a promotional period, but the transfer fee adds cost immediately. The question is whether the interest avoided is larger than the fee and any post-promo interest.

The fee raises the starting balance

A transfer fee is usually a percentage of the transferred balance. If it is added to the new card balance, the payoff plan starts higher than the old balance.

The promo window matters

If the balance is not paid off before the promotional period ends, the post-promo APR can materially change the result.

Use the calculator

Use the balance transfer calculator to compare current-card cost against transfer cost, including fee and payoff schedule.