What this calculator does
Rewards cards advertise cash back, points or miles, but many charge an annual fee and the rewards depend on where you spend. This calculator works out what a card would really give you for your own spending: rewards a year, minus the fee, plus any sign-up bonus in the first year, and how much you would need to spend to cover the fee. It does not recommend any card.
How the numbers work
- Cash back cards: rewards a year = monthly spending × 12 × the % back, for each category.
- Points or miles cards: rewards a year = monthly spending × 12 × points per $1 × the value of one point. The value depends on how you redeem points, so use the value you expect to get.
- Yearly value = rewards − annual fee. First year adds the sign-up bonus if you meet its spending requirement.
- Spending needed to cover the fee = annual fee ÷ your average reward rate.
- Interest = the balance you usually carry × the APR, shown separately because it usually costs more than the rewards.
An example
You spend $600 a month on groceries at 3% back, $300 on gas and transit at 2% and $900 on everything else at 1%. That is $21,600 a year and $396 in cash back. With a $95 annual fee, the card is worth $301 a year, or $501 in the first year with a $200 bonus. Your average reward rate is 1.83%, so $5,182 a year of spending covers the fee. If you carried a $2,000 balance at a 22% APR, interest would cost about $440 a year, more than the rewards.
What to check in the card's terms
- Caps and categories: some higher rates apply only up to a limit or only in categories that change during the year.
- Points value and redemption options, and whether points expire.
- The APR, the grace period, and fees for late payments, balance transfers and foreign transactions. The CFPB's credit card key terms explain each one, and card agreements can be found in the CFPB's Credit Card Agreement Database.
- The CFPB found complaints about unexpected promotional conditions, devaluation, redemption problems and revocation of rewards (CFPB, May 2024). See also our rewards math guide.
Frequently asked questions
Is a card with an annual fee worth it?
Only if the rewards on your real spending are larger than the fee, and you pay the balance in full. The calculator shows the yearly value after the fee and the spending needed to cover it.
How much is a point worth?
It depends on the program and how you redeem. Check the redemption values in the card's rewards terms and enter the value you expect.
Should I count the sign-up bonus?
Only in the first year, and only if you would meet its spending requirement with your normal spending.
What if I carry a balance?
Interest usually costs more than rewards. The calculator shows a year of interest on your average balance next to the rewards.
Is my information saved?
No. The numbers stay in your browser and are not sent to us.