💎Credit Card Rewards Calculator
Calculate how much you'll earn in credit card rewards. Compare cash back, points, and miles to find the best card for your spending habits.
Frequently Asked Questions
What are credit card rewards and how do they work?
Credit card rewards are incentives that give you value back on purchases. Three main types: (1) Cash Back - Direct percentage back (1-6% typically). Example: 3% on dining = $3 back per $100 spent. Can be statement credit, check, or bank deposit. (2) Points - Earn points redeemable for cash, gift cards, or travel. Example: 2x points = 2 points per dollar. Value: typically $0.01-0.02 per point ($100 purchase = 200 points = $2-4 value). (3) Miles - Similar to points but for travel. Example: 5x miles on flights. Value varies: 1-2 cents per mile typically. Best cards: Citi Double Cash (2% everything), Chase Sapphire Preferred (travel/dining), Amex Gold (groceries/dining). Key: Pay in full monthly or interest erases rewards!
Are credit cards with annual fees worth it?
Annual fee cards can be worth it IF benefits exceed the fee. Math: Annual rewards - Annual fee = Net benefit. Example: Chase Sapphire Preferred ($95 fee): $12K annual spending, 3x on dining ($3,600) + travel ($2,400) = $180 in rewards at $0.01/point. Net benefit: $180 - $95 = $85 positive. PLUS: 60K sign-up bonus ($600 value) makes year 1 worth $685. Worth it when: (1) Sign-up bonus covers 2-3 years of fees. (2) You spend heavily in bonus categories. (3) Benefits (airport lounge, travel credit) save money. NOT worth it when: (1) Light spending (under $10K/year). (2) Don't use perks. (3) No-fee card gives same rewards. Rule of thumb: Need to earn 3x the annual fee in extra rewards vs no-fee card.
Should I get a cash back or points card?
CASH BACK cards: BEST FOR: Simplicity, guaranteed value, non-travelers, beginners. PROS: Clear value (2% = $2), no complexity, automatic. CONS: Lower max value (2-5% typical), fewer perks. Top picks: Citi Double Cash (2% everything), Chase Freedom Unlimited (1.5% + rotating 5%), Capital One Quicksilver (1.5%). POINTS/MILES cards: BEST FOR: Travelers, big spenders, those who optimize redemptions. PROS: Higher value if used right (2-5 cents/point for premium travel), better perks (lounge access, credits). CONS: Complex, value varies, points can expire. Top picks: Chase Sapphire Reserve (travel), Amex Gold (dining/groceries), Capital One Venture. VERDICT: Cash back if you spend under $20K/year or don't travel. Points/miles if you travel 3+ times/year and spend $30K+.
How much are credit card points and miles really worth?
Point/mile values vary widely based on redemption: CASH BACK VALUE (worst): 0.5-1 cent per point. Example: 10,000 points = $50-100. GIFT CARD VALUE (poor): 0.8-1 cent per point. TRAVEL PORTAL VALUE (good): 1-1.5 cents per point. Example: Chase Sapphire Reserve: 1.5 cents when booking through Chase. TRANSFER TO AIRLINES (best): 1.5-5+ cents per point. Example: Transfer 25,000 Chase points to United for flight worth $500 = 2 cents/point. AVERAGE VALUES: Chase Ultimate Rewards: 1.5-2 cents. Amex Membership Rewards: 1.5-2 cents. Capital One miles: 1-1.5 cents. Airline miles: 1-2 cents (can be 5+ for business/first class). Hotel points: 0.5-1 cent (varies by brand). TIP: Always compare point redemption value to cash price. Never redeem for under 1 cent unless expiring.
What's the best strategy to maximize credit card rewards?
Top 10 reward maximization strategies: (1) Use multiple cards for category bonuses - 5% on travel, 3% dining, 2% everything else. (2) Hit sign-up bonuses - Worth $500-1000+ each (3-5 cards over 2 years = $2,000-5,000). (3) Pay in full monthly - Interest erases all rewards. $5K balance at 20% APR = $1,000 interest (destroys $100 in rewards). (4) Time large purchases - Buy before bonus deadlines or for sign-up bonuses. (5) Use shopping portals - Earn 2-10x extra points through retailer portals. (6) Stack promotions - Card bonus + portal + store loyalty = triple dip. (7) Category rotation - Activate 5% quarterly bonuses (Chase Freedom). (8) Refer friends - Earn 10,000-20,000 bonus points per referral. (9) Use dining programs - Register cards with Rewards Network for extra points. (10) Transfer points strategically - To airline partners for 2-5x value vs cash. Advanced: 'Churn' cards for sign-up bonuses (requires excellent credit and discipline).
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Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.