Credit Card Rewards Calculator: Which Card Earns You More?
Enter your monthly spending by category and each card's reward rates, point value, annual fee and welcome bonus. The calculator shows the yearly value of both cards, the break-even spending for an annual fee and what carrying a balance costs.
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Credit card rewards are only worth something if they beat the card's costs for the way you actually spend. A card with 3% on groceries and a $95 annual fee can be worth less than a no-fee 2% card, or much more, depending on your spending. This credit card rewards calculator compares two cards on your own numbers, including fees, welcome bonuses and the interest you would pay if you carry a balance.
Credit card rewards calculator
Enter your monthly spending and each card's reward rates to see which card earns more after fees, bonuses and any interest.
Assumes every dollar in a category earns that category's rate. Many cards cap bonus categories (for example up to a certain amount per quarter or year) or rotate them; adjust the rates if your spending exceeds a cap. Welcome bonuses usually require spending a set amount within the first months. 22.15% is the Federal Reserve's Q2 2026 average for card accounts charged interest.
Key takeaways
- On $30,600 of yearly spending, the example flat 2% card earns $612 a year. The category card earns $552 but nets $457 after its $95 fee.
- With its $200 welcome bonus, the category card is worth $657 in the first year, more than the flat card, but less from year two.
- Carrying a $3,000 balance at 22.15% APR costs about $665 a year in interest, more than either card's rewards.
- The value of points depends on how you redeem them; use a realistic cents-per-point value.
How to use the calculator
- Enter your monthly spending in each category. Your card statements or banking app usually show category totals.
- Enter each card's earn rate per $1. For a cash-back card, 2 means 2% back; for points or miles, enter the points earned per dollar.
- Set the value of one point. Cash back is worth 1 cent per point. Points and miles vary by program and redemption.
- Add the annual fee and welcome bonus for each card.
- If you sometimes carry a balance, enter the average amount to see the interest cost.
How the rewards are calculated
Yearly rewards = Σ (monthly spending × 12 × points per $1 × cents per point ÷ 100)
The net value per year subtracts the annual fee. The first-year value adds the welcome bonus. The effective reward rate is your total yearly rewards divided by your total yearly spending, a simple way to compare very different cards.
The example in detail
| Category | Yearly spending | Flat 2% card | Category card |
|---|---|---|---|
| Groceries | $7,200 | $144 (2%) | $216 (3%) |
| Dining and takeout | $3,600 | $72 (2%) | $108 (3%) |
| Gas and transit | $1,800 | $36 (2%) | $36 (2%) |
| Travel | $1,200 | $24 (2%) | $24 (2%) |
| Online shopping | $2,400 | $48 (2%) | $24 (1%) |
| Everything else | $14,400 | $288 (2%) | $144 (1%) |
| Total rewards | $30,600 | $612 | $552 |
The category card wins on groceries and dining, but loses on the large "everything else" share. After the $95 fee it nets $457 a year, $155 less than the flat card. The cards in this example are generic; compare real offers in best cash back credit cards and cards with no annual fee.
Is the annual fee worth it?
A fee card has to earn more than the fee plus what a no-fee card would earn. The calculator shows the break-even spending: with your mix, how much you would need to spend for the higher-fee card to come out ahead. Count only benefits you would really use, such as travel credits you already spend on, at their real value to you.
Rewards vs. interest
Card accounts that were charged interest paid an average APR of 22.15% in the Federal Reserve's second-quarter 2026 data. At that rate, a $3,000 balance carried all year costs about $665 in interest, more than the rewards on $30,000 of spending. If you carry balances, a low-rate card or a 0% balance transfer saves far more than any rewards program. Paying the full statement balance every month keeps the grace period and makes rewards real.
Things the calculator cannot see
- Category caps: many cards limit bonus rates to a set amount of spending per quarter or year, then pay the base rate.
- Rotating categories that change every quarter and must be activated.
- Foreign transaction fees, often around 3% on purchases abroad on cards that charge them.
- Point devaluations and expiration rules.
- Welcome bonus requirements, usually a minimum spend in the first months.
Frequently asked questions
How much is a credit card point worth?
Cash-back points are usually worth 1 cent each. Travel points and miles vary widely by program and how you redeem them; use the value you would really get.
Is a flat-rate card or a category card better?
Flat-rate cards win when most spending falls outside bonus categories. Category cards win when a large share goes to their bonus categories. The calculator shows which applies to you.
Should I count the welcome bonus?
Count it for the first year only and only if you would meet the spending requirement without buying things you do not need.
Do rewards affect my taxes?
Under long-standing IRS treatment, rewards earned on purchases are generally treated as a rebate rather than taxable income. Bonuses earned without spending, such as for opening an account, may be reported as income.
Can I compare more than two cards?
Compare two at a time, then compare the winner with the next card.
