Find out what a rewards card really earns you. Enter what you spend each month by category, the card's earning rates, what a point is worth, the annual fee and any sign-up bonus, then compare two cards side by side to see which one pays more every year and in year one.
Last updated:
Your monthly spending
$/mo
$/mo
$/mo
$/mo
$/mo
$/mo
Card A
x / %
x / %
x / %
x / %
x / %
x / %
¢
Cents each point is worth to you (cash back cards: 1)
$
pts / $
Points (or $ for cash back), first year only
$
Statement credits you would really use
Card B (optional comparison)
x / %
x / %
x / %
x / %
x / %
x / %
¢
$
pts / $
$
Enter your values to see the result.
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How to use the Credit Card Rewards Calculator
Enter your monthly spending in each category. Use your statements for realistic numbers.
Set up Card A: choose points or cash back, enter the earning rate for each category, the value per point, the annual fee, the sign-up bonus and any credits you really use.
Set up Card B the same way, or untick the comparison to evaluate one card.
Press Calculate rewards to see the net yearly value, first-year value and which card wins.
Check the table to see which card earns more in each category and whether carrying both makes sense.
How the rewards math works
For each card the calculator works out the yearly value of the rewards you earn and then subtracts the cost of holding the card:
Rewards value = Σ (yearly spend in category × earning rate) × value per point Net yearly value = rewards value + credits you use − annual fee First-year value = net yearly value + sign-up bonus value
For cash back cards the earning rate is a percentage, so $300 a month of dining at 3% returns $3,600 × 3% = $108 a year. For points or miles cards the rate is points per dollar and you choose what each point is worth in cents. The break-even spending for a fee card is the extra fee (net of credits) divided by the difference in effective earn rates between the two cards.
Typical point values and earning rates
Reward type
Common redemption value
Notes
Cash back
1 cent per point / 1% = 1%
Simplest; value is fixed and predictable
Bank points as statement credit
Often 1 cent, sometimes less
Check the redemption page before assuming more
Bank points for travel through a portal
Often 1 to 1.5 cents
Depends on the card tier
Airline miles / hotel points
Varies widely
Value depends on route, dates and availability
Flat-rate cards
1.5% to 2% on everything
Strong default if your spending is spread out
Category cards
3% to 6% in bonus categories, 1% elsewhere
Bonus rates are often capped
These are general ranges, not offers. Card terms change often, so take the rates, fees and bonuses from the card issuer's current terms.
Tips to get more from rewards
Pay in full every month. Interest at typical card rates costs far more than any reward.
Value points conservatively. Use the redemption you will really make, not the best case.
Only count credits you would spend anyway. A $100 credit for something you would never buy is worth $0 to you.
Do not overspend for a bonus. A minimum-spend requirement is only worth meeting with purchases you were already planning.
Re-check yearly. When your spending pattern or the card's terms change, the best card can change too.
Frequently asked questions
How do you calculate credit card rewards?
Multiply what you spend in each category by the card's earning rate for that category, add the results, convert points to dollars with a value per point, then subtract the annual fee. Example: $7,200 a year on groceries at 3 points per dollar is 21,600 points; at 1.25 cents each they are worth $270.
What is a credit card point worth?
It depends on how you redeem it. Many points are worth 1 cent each as cash back or statement credit, some programs pay 1.25 to 1.5 cents when used for travel through their portal, and transfers to airline or hotel partners can be worth more or less. Use a conservative value you are confident you will actually get.
Is a card with an annual fee worth it?
A fee card is worth it when its extra rewards plus the credits you genuinely use are larger than the fee compared with a no-fee alternative. The calculator shows the break-even yearly spending at which the higher-fee card catches up with your current spending mix.
Should I count the sign-up bonus?
Count it for the first year only. A bonus can make a card look great in year one, but the ongoing yearly value after fees is what matters if you plan to keep the card. The calculator shows both numbers separately.
Is cash back better than points?
Not automatically. A flat 2% cash back card beats a points card earning 1x on most spending unless the points are worth more than 2 cents each or most of your spending falls in its bonus categories. Comparing your own spending mix is the only way to know.
Do rewards matter if I carry a balance?
Interest charges usually wipe out rewards. A typical card APR above 20% costs far more than 1 to 5% in rewards, so paying the full statement balance every month comes first. Use a credit card interest calculator to see the cost of carrying a balance.
Does the calculator include spending caps?
No. Some cards limit bonus rates to a quarterly or yearly spending cap and then pay 1x. If your card has a cap, lower the category spending to the cap and add the rest to Everything else.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.