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Effective Return Calculator

Compare any reward strategy as a single percentage

e.g. 3 for “3x points”

Use your actual redemption value

0 for no-fee cards

Gross Return Rate

4.50%

3× × 1.5¢

Net Annual Reward

$450

after $0 annual fee

Net Return Rate

4.50%

on $10,000 spend

Compare to Cashback Alternative

Points Card Net

$450

4.50% effective

Cashback 2%

$200

2% flat

Points card wins by $250/year at your valuation assumption.

This result is only as accurate as your point valuation. Use your realistic redemption value, not aspirational figures. See How to Value Points for guidance on choosing an appropriate number.

How to Use This Calculator

Enter your card's earn rate for a specific category, your expected point valuation, any annual fee, and your annual spend in that category. The calculator converts everything to a net effective return percentage so you can compare directly with cashback alternatives.

For point valuations, use the value you actually expect to receive — see How to Value Points and Miles for guidance.