Credit Card Rewards Value
Value credit card rewards in points or miles against annual fees.
About Credit Card Rewards Value
Points and miles have a cash value per unit, so multiplying the year's points by that value and subtracting the fee gives the card's net worth. A rewards card is only worth holding if the rewards value exceeds its annual fee and your normal spending pattern.
Formula
Credit Card Rewards Value
Rewards value = points x cents per point / 100; net = value - annual fee
- cents per point
- How many cents each point is worth when redeemed
Worked example
With the default values below, Credit Card Rewards Value returns Rewards Dollar Value of $288.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Points earned per yearminimum 0
- 24,000
- Points per dollar valueminimum 0
- 1
- Annual fee
- 95
- Cents per pointminimum 0 cents
- 1.2 cents
Results
- Rewards Dollar Value
- $288.00
- Value per Point
- $0.0120
- Net Value After Fee
- $193.00
Step by step
- 1Values used
- 2Credit Card Rewards Value
- 3Rewards Dollar Value= 288.00
- 4Value per Point= 0.0120
- 5Net Value After Fee= 193.00
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or tax into account.
- Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
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 Credit Card Rewards Value calculated?
Rewards value = points x cents per point / 100; net = value - annual fee Points and miles have a cash value per unit, so multiplying the year's points by that value and subtracting the fee gives the card's net worth.
Why does Credit Card Rewards Value matter?
A rewards card is only worth holding if the rewards value exceeds its annual fee and your normal spending pattern.
What values do I need to enter?
This calculator takes 4 inputs: Points earned per year, Points per dollar value, Annual fee, Cents per point. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.