Credit Card Rewards Value Calculator

How it is calculated

The tool values a rewards card over one year: gross rewards = annual_spend × rewards_rate ÷ 100 and net value = gross rewards − annual_fee. Annual spend is the total you put on the card in twelve months, the rate is the percentage value of rewards per currency unit spent, and the fee is the yearly charge. Net value turns negative when the rewards are smaller than the fee, shown with the sign first (for example -$35.00), so the card then costs you money. The card breaks even at annual_fee ÷ (rewards_rate ÷ 100) of spend. Points and miles must first be converted into a cash-equivalent rate (for example, 1.5 points per unit at 1 cent each is 1.5%). A no-fee card needs a fee of 0, not an empty field. Empty or negative fields, and a rewards rate above 100%, give no result. Sign-up bonuses, caps, and interest are not included.

Common mistakes

• Entering points earned instead of the cash value of the rewards rate. Convert points or miles into a percentage first using what a point is worth to you.
• Entering monthly spend in an annual field. The result would be twelve times too small.
• Counting a one-off sign-up bonus as part of every year's rate. It would overstate the net value in later years.
• Applying the top category rate to all spending. Use a blended rate across your real purchases.
• Ignoring that a negative net value is a real result. It means the fee costs more than the rewards pay back at your spending level. Leaving the fee empty for a no-fee card, however, gives no result; type 0.