Credit card rewards calculator: what your spending could earn on a better card
Most people pay for everyday purchases with whatever card is already in their wallet. A card with a better rewards rate can earn noticeably more on the same spending, but a higher rate often comes with an annual fee. This calculator compares two cards on your actual spending, so you can see what you’d gain after fees, and how much you’d need to spend for a fee to pay for itself.
Credit card rewards calculator
- Extra per year after fees
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- Rewards per year, current card
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- Rewards per year, new card
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- Monthly spending to cover the fee difference
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Rewards are your average rate across all spending; cards with bonus categories earn more on some purchases and less on others, so use a blended rate for your mix. Points are counted at the dollar value you enter. Rewards only add up if you pay the balance in full each month: interest at a typical card APR outweighs any rewards rate. Everything here runs in your browser; nothing you enter is stored or sent.
What this calculator can help you understand
- How much each card would earn on your yearly spending.
- What you’d gain or lose after annual fees.
- The monthly spending at which a higher-fee card pays for itself.
- What a sign-up bonus adds in the first year.
When it’s useful
- When choosing a new card.
- When an annual fee comes due and you’re deciding whether to keep the card.
- When your spending changes, after a move or a new household expense.
Who it’s for
- People who pay their card in full each month and want more back on everyday spending.
- Anyone deciding whether an annual fee is worth it.
- Households consolidating spending onto one card.
What to enter
| Input | What it means | Where to find it |
|---|---|---|
| Monthly spending on the card | Purchases you’d put on the card each month | Your recent statements |
| Rewards rate (current card) | Average cash back or point value per dollar | Your card’s terms |
| Annual fee (current card) | What you pay each year to hold the card | Your card’s terms |
| Rewards rate (new card) | Average rate across your spending | The new card’s terms |
| Annual fee (new card) | The new card’s yearly fee | The new card’s terms |
| Sign-up bonus | A one-time bonus, in dollars | The offer’s terms |
How to use it
- Enter how much you spend on the card each month.
- Enter your current card’s rewards rate and annual fee.
- Enter the rate and fee for the card you’re considering.
- Optionally, enter a sign-up bonus.
- Read the extra you’d earn after fees, and the spending needed to cover the fee difference.
Understanding your results
- Rewards per year = monthly spending × 12 × rewards rate, minus the annual fee.
- Extra per year after fees = new card’s rewards − current card’s rewards − the difference in annual fees.
- Monthly spending to cover the fee difference = fee difference ÷ the difference in rewards rates ÷ 12.
A worked example
Suppose you spend $2,000 a month on a card that pays 1% with no fee, and you’re considering a 2% card with a $95 annual fee.
- Current card: $240 a year in rewards.
- New card: $480 a year, $240 more before fees.
- After the fee: $145 more a year.
- Break-even spending: the extra fee is covered at about $792 a month. At $500 a month, you’d earn −$35 a year compared with your current card.
- Without a fee: a 2% card with no fee would earn $240 more a year.
- What it means: at your spending, the higher-fee card is worth it, but a no-fee card with the same rate would be better still.
Common mistakes
- Comparing headline rates. Bonus categories often apply to only part of your spending.
- Overvaluing points. Value them at what you’d actually redeem them for.
- Spending more to earn rewards. Extra spending costs more than the rewards return.
- Carrying a balance. Interest erases rewards quickly.
- Forgetting the fee renews every year.
What to do with your result
- If the new card wins, check its terms for foreign transaction fees, redemption rules and the APR.
- Compare current card offers in Best Rewards Credit Cards.
- If you carry a balance, use the credit card payoff calculator first.
- Put your rewards to work in a high-yield account; the high-yield savings calculator shows the difference.
Limitations to keep in mind
The calculator uses a single average rewards rate for each card and treats points at the value you enter. It doesn’t include category caps, rotating categories, redemption limits, credit approval or the effect on your credit score. Card terms change; check the issuer’s current terms. This isn’t financial or credit advice.
Frequently asked questions
Is a card with an annual fee ever worth it?
Yes, if the extra rewards on your spending exceed the extra fee. In our example, going from 1% with no fee to 2% with a $95 fee pays for itself once you spend about $792 a month.
How do I compare points and miles?
Convert them to a cash value. Many points are worth about one cent each when redeemed for cash or statement credits; some programs are worth more for travel, but only if you’d actually book that travel.
What if a card has bonus categories?
Use a blended rate: the rewards you’d earn across all your spending, divided by that spending. A card with 3% on groceries and 1% elsewhere might average well under 2%.
Should I count the sign-up bonus?
Count it in the first year only, and only if you’d meet the spending requirement with purchases you’d make anyway.
Do rewards make sense if I carry a balance?
Rarely. At a 22% APR, a $2,000 balance costs about $37 a month in interest, far more than a typical rewards rate earns. Pay off the balance first.
Will applying for a new card affect my credit?
A new application usually means a hard inquiry and can lower your score slightly for a time. A new account also lowers the average age of your accounts.
Related calculators
This calculator gives estimates for illustration, based on the figures you enter and the assumptions described on this page. It isn’t financial, tax or legal advice, an offer, or a guarantee of any outcome.