Reward math
Build an annual credit card rewards budget from actual spending
Create a realistic annual reward estimate from ordinary purchases, category eligibility and conservative redemption values, then subtract costs.
Net rewards calculator
Estimate yearly reward value after the annual fee and costs you enter.
Put a dollar value on your rewards
Enter annual eligible purchases, points earned per dollar, the cents you expect to receive for each point, the annual fee and other costs. For a flat cash-back card, enter its percentage as points per dollar and use one cent per point: an illustrative 2% card is 2 and 1.
Gross value = spending × points per dollar × cents per point ÷ 100. Net value = gross value − annual fee − other costs. Net return = net value ÷ spending × 100. Illustrative default: $18,000 × 2 × 1 ÷ 100 = $360; subtracting a $95 fee leaves $265, or about 1.47% of spending.
This is a recurring-year estimate. It excludes bonuses, caps, merchant coding, taxes and changing program terms. Include only costs applicable to your situation. If you revolve a balance, enter a realistic interest estimate in other costs, but use the issuer’s statement for actual interest. A negative result means modeled costs exceed modeled rewards. No result is an approval prediction or personalized advice.
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