WorthCalc

Cashback Break-even Calculator

This is annual fee credit card worth it calculator compares category cashback, welcome bonus, annual fee, and a no-fee 1% card. Use it before upgrading to see the monthly spending needed to break even.

Inputs

Verdict

Enter spending and cashback rates to compare cards.

Annual cashback$0

Net annual value$0

No-fee 1% baseline$0

Break-even monthly spend$0

How it works

The calculator multiplies monthly spend in each category by 12 and by that category cashback rate. Net annual value is annual cashback plus welcome bonus minus the annual fee.

The verdict compares that net value with a no-fee 1% baseline card. Break-even monthly spend uses your current category mix to estimate how much spending is needed before the annual-fee card pulls ahead.

This tool runs entirely in your browser. Your input never leaves your device.

Frequently asked questions

How do I know if an annual fee credit card is worth it?
Compare net annual value after cashback, welcome bonus, and annual fee against a no-fee 1% baseline card. If the annual-fee card wins, it can be worth it.
What is cashback break-even monthly spend?
It is the monthly spend needed for the card rewards to cover the annual fee and beat the 1% no-fee baseline, using your current category mix.
Should I include a welcome bonus?
Include it if you are confident you can earn it without extra spending. For long-term value, rerun the calculator with the bonus set to 0.
Why compare against a 1% no-fee card?
Because a no-fee card is the opportunity cost. An annual-fee card should beat a simple free baseline, not just have positive rewards.
Does this include points transfer value?
No. This calculator treats rewards as cashback percentages. If points are worth more or less to you, convert them into an effective cashback rate.