Loyalty Program Cost
Estimate the cost of running a points-based loyalty program.
About Loyalty Program Cost
Issuing points effectively discounts sales by a set share, and the fixed platform fee sits on top for a total monthly program cost. Loyalty schemes quietly behave like an extra discount, so costing them tells owners whether the repeat purchase lift actually pays the reward bill.
Formula
Loyalty Program Cost
Program cost = points issued + fixed platform cost
- points value
- Booking share of sales given back as rewards
Worked example
With the default values below, Loyalty Program Cost returns Points Issued Cost of $1,600.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Points value as share of salesaccepts 0–20 %
- 2 %
- Monthly salesminimum 0
- 80,000
- Fixed program costminimum 0
- 1,500
Results
- Points Issued Cost
- $1,600.00
- Total Monthly Program Cost
- $3,100.00
- Cost as Share of Sales
- 3.88%
Step by step
- 1Values used
- 2Loyalty Program Cost
- 3Points Issued Cost= 1,600.00
- 4Total Monthly Program Cost= 3,100.00
- 5Cost as Share of Sales= 3.88
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Loyalty Program Cost calculated?
Program cost = points issued + fixed platform cost Issuing points effectively discounts sales by a set share, and the fixed platform fee sits on top for a total monthly program cost.
Why does Loyalty Program Cost matter?
Loyalty schemes quietly behave like an extra discount, so costing them tells owners whether the repeat purchase lift actually pays the reward bill.
What values do I need to enter?
This calculator takes 3 inputs: Points value as share of sales, Monthly sales, Fixed program cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.