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.
Methodology
The calculator multiplies monthly spending in each category by 12 and by the entered cashback rate. It adds any welcome bonus, subtracts the annual fee, and compares the result with a no-fee 1% baseline.
Assumptions
- Default annual fee 95, welcome bonus 200, groceries 500 at 3%, dining 250 at 2%, other 500 at 1.5%, and the 1% no-fee baseline are editable examples.
- The welcome bonus should only be included if you can earn it without extra spending.
- Break-even spend assumes the same category mix as the current inputs.
Example calculation
If monthly spending totals 1,250 and the weighted reward rate beats 1%, the calculator estimates whether rewards plus bonus exceed the annual fee and the no-fee baseline.
Limitations
- Point-transfer value, rotating categories, reward caps, merchant coding, interest charges, and late fees are not modeled.
- Actual card terms can change and should be verified with the issuer.
Last updated: July 7, 2026
Estimate disclaimer: This tool provides estimates only. It is not financial advice. Results depend on the numbers you enter and the simplified assumptions listed here.
This tool runs entirely in your browser. Your input never leaves your device.