Rewards Card Value Calculator
Net a rewards card’s earnings against its annual fee and any interest, and compare it with a flat 2% card.
Free · No sign-up · Your inputs stay in your browser
Your numbers
Net the rewards against the costs
Your projection
$375 a year after the fee
Rewards earned
$470
First year with bonus
$575
A 2% no-fee card instead
$500
Rewards only pay if the balance is paid in full every month. Carrying even a modest balance at a typical card APR costs more than any rewards rate returns. Points are valued here at one cent each.
About this tool
Method, assumptions, practical next steps, and limits.
Rewards minus costs
A rewards card is worth it only when what it earns beats its fee and whatever a simpler card would have earned.
How the calculation works
Net value = Σ (category spending × reward rate) − annual fee − interest
$4,000 of dining and $7,000 of groceries at 3%, and $14,000 of other spending at 1%, earn $470. After a $95 fee, the card is worth $375 a year, or $575 in the first year with a $200 bonus. A flat 2% card on the same $25,000 earns $500 with no fee, more than this card from the second year.
The condition
Rewards only pay if the balance is paid in full every month. Interest on a carried balance at a typical card APR costs more than rewards return. Points are valued here at one cent each; their real value depends on how you redeem them.
