Financial glossary
Promotional APR
In plain English
A temporary credit-card interest rate offered for a defined period, after which the account’s standard ongoing APR takes effect.
Promotional APR
A promotional APR is a temporary annual percentage rate offered for certain credit-card transactions, such as balance transfers or new purchases. It may be 0% or simply lower than the account’s normal rate. The offer specifies how long it lasts and the ongoing, or “go-to,” rate that applies afterward.
A 0% promotional APR does not necessarily make a transaction free. A balance transfer may carry an upfront fee, and new purchases may follow a different APR. The cardholder agreement also explains how payments are allocated, when the promotion ends, and whether missed payments can affect the offer.
The safest payoff plan works backward from the fee-inclusive balance and promotional duration. Dividing a $6,180 balance across 18 interest-free months requires about $343.33 per month. Paying less leaves a balance exposed to the ongoing APR after month 18.
Promotional APR differs from deferred interest. With a standard 0% period, interest generally begins on the remaining balance after the offer ends; deferred-interest terms can impose previously accrued interest if conditions are not met. Read the exact disclosure rather than assuming the labels are interchangeable.
The balance transfer calculator models both the promotional and post-promotion periods and includes the transfer fee.
Related calculators
- Credit Card Balance Transfer CalculatorCompare a balance transfer with keeping your current card. Include the transfer fee, promo APR, post-promo APR, payoff time, and real savings.
- Credit Card Payoff CalculatorSee when your credit card will be paid off with a fixed payment — and what minimum payments would really cost you in years and interest.