Is Your Annual Fee Card Worth Keeping?
Premium credit cards charge annual fees ranging from $95 to over $700 — but they often come with rich rewards and perks that can outweigh the cost. This calculator helps you determine whether your card is truly worth it by comparing total annual benefits against the fee.
How to Calculate Card ROI
Annual benefits include cashback earned (monthly spend × 12 × cashback rate), the cash value of points or miles (spend × 12 × points rate), and fixed perks like travel credits, lounge access, or statement credits. ROI = (total benefits ÷ annual fee) × 100. An ROI above 100% means you're ahead.
Tips for Valuing Points and Miles
Airline miles are typically valued at $0.01–$0.02 per mile depending on redemption. Hotel points range from $0.005 to $0.01. If you always redeem for cash or statement credits, use the face value. Apply the actual redemption value you typically achieve for the most accurate result.
Frequently Asked Questions
If your ROI drops below 100% (benefits are worth less than the fee) and you can't increase spending or usage of perks, it may be time to downgrade to a no-fee version or cancel.
This calculator assumes the cashback rate applies to all eligible spend. If your card has monthly or category caps, adjust the effective rate accordingly for accuracy.
Airport lounge access ($300+ annual value), TSA PreCheck/Global Entry credits, hotel status benefits, annual travel credits, dining credits, and any other fixed-value perks you actually use.