Q: How do you factor in the balance transfer fee with a new interest rate in order to calculate your total savings over your existing account?
A: Most balance transfer offers have rates that expire after one year. In this scenario you simply multiply the new APR by the balance to be transferred and add the balance transfer fee to get your approximate costs for a 12-month period. Then multiply the balance by the old APR and subtract the two. Generally, balance transfer fees wipe out any potential savings if you are transferring less than $1500.
