0% APR Arbitrage (Stoozing) Calculator
Borrow at 0% APR, put the cash in a high-yield savings account, and earn the spread. This calculator simulates the whole stooze month by month — transfer fee, minimum payments, interest earned, and taxes — so you see your true profit.
Arbitrage Results
Gross interest earned
$600
Transfer fee
$300
Gross profit
$300
Net profit (after tax)
$234
Annualized ROI
2.40%
Final card balance
$0
| Mo | Interest | Payment | Invested | Card owes |
|---|---|---|---|---|
| 1 | $42 | $103 | $9,939 | $10,197 |
| 2 | $41 | $102 | $9,878 | $10,095 |
| 3 | $41 | $101 | $9,818 | $9,994 |
| 4 | $41 | $100 | $9,759 | $9,894 |
| 5 | $41 | $99 | $9,701 | $9,795 |
| 6 | $40 | $98 | $9,643 | $9,697 |
| 7 | $40 | $97 | $9,587 | $9,600 |
| 8 | $40 | $96 | $9,531 | $9,504 |
| 9 | $40 | $95 | $9,475 | $9,409 |
| 10 | $39 | $94 | $9,421 | $9,315 |
| 11 | $39 | $93 | $9,367 | $9,222 |
| 12 | $39 | $92 | $9,314 | $9,130 |
| 13 | $39 | $91 | $9,261 | $9,038 |
| 14 | $39 | $90 | $9,209 | $8,948 |
| 15 | $38 | $89 | $9,158 | $8,859 |
Important stoozing risks
- Missing a payment can void the 0% intro APR and trigger penalty rates.
- You must pay off the full balance before the intro period ends.
- Carrying a high balance can hurt your credit score and utilization.
- Interest rates and APYs can change before you finish the strategy.
Frequently asked questions
What is stoozing?
Stoozing is a strategy where you take advantage of a 0% APR credit card offer, borrow money at no interest, and put that cash into a high-yield savings account to earn interest. As long as you repay the full balance before the 0% period ends, the interest you earn is profit. It's a form of free money arbitrage between the card's 0% rate and the savings account's APY.
Is stoozing profitable?
It can be, but only when the savings APY exceeds your costs. You subtract the transfer fee (typically 3–5%) and the taxes owed on the interest you earn. With an APY of 4–5% and a low or no transfer fee, stoozing on a $10,000 limit for 15 months can net a few hundred dollars. When savings rates are low or fees are high, the profit can vanish entirely — this calculator shows the real number.
Does the transfer fee matter?
Yes, a lot. A 3% fee on $10,000 is $300 up front, which can erase a year's worth of interest earnings. To make stoozing worthwhile, look for balance-transfer or 0% purchase offers with no fee or a very low one, and a long intro period (12–21 months). The longer the period and the lower the fee, the more interest can accumulate before you repay.
What are the risks of stoozing?
The biggest risk is carrying a high credit card balance, which can hurt your credit score and utilization. Missing a single payment can void the 0% intro APR and trigger a penalty rate — interest you must then pay. You must be disciplined about repaying before the intro period ends, and savings APYs can change. Stoozing only works if you can repay in full on time.
Do I pay taxes on stoozing interest?
Yes. The interest you earn in a high-yield savings account is taxable ordinary income (reported on a 1099-INT). This calculator subtracts a marginal tax rate from your gross interest so you can see your true take-home profit after taxes, not just the headline number.