Credit Card Rewards Value Calculator
Credit card rewards net of the annual fee, with the monthly cap applied. Headline accelerated rates are almost always capped, and the cap is what determines the real return.
Also called: card rewards calculator, best credit card for me.
$19,000.00 a year after the 5,000 fee, from $24,000.00 of rewards. The effective return on $792,000.00 of spending is 2.4%. The monthly cap costs you 3720 a year: you would earn more without it.
How this is calculated
Each category earns at its own rate, the total is capped monthly, and the annual fee comes off. The cap is the part that matters: a card advertising five percent on dining with a two thousand rupee monthly cap returns five percent only until the cap binds, after which the marginal rate is whatever the base rate is. The effective rate shown here is the number to compare between cards, and the first year figure is separated because a welcome benefit does not repeat.
rewards by category, capped monthly, less the annual fee- s
- Spend by category
- r
- Reward rate
Method and limits
What it assumes
- A single overall monthly cap. Real cards often cap by category.
What it deliberately does not model
- Points expire and redemption options vary, so the point value is an input you must set honestly.
- This assumes the balance is paid in full. Interest at credit card rates dwarfs any reward.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Is a high annual fee card worth it?
- Only if your actual spending pattern earns enough to clear the fee, which the break-even spend figure shows. A card optimised for spending you do not do is worth nothing.
- Do rewards matter if I carry a balance?
- No. Credit card interest runs far above any reward rate, so a revolving balance loses money regardless of what you earn on it.