The Finance Algorithm

Rewards Points Calculator

Calculate the real value of your credit card rewards and points

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$3k
1

Check your card's earn rate

$
$500

Spending in bonus categories

3

e.g., 3x points on groceries

$
$150
0.5

Typical: 0.5-1.5 cents per point

80,000

The button asks our AI to explain these figures in words.

Rewards value analysis

Year 1 net value

$490

rewards − fee + signup

Ongoing net value

$90

Y2+ per year

Effective return

0.25%

on your annual spend

Break-even spend

$30,000

annual spend to justify fee

Where your points come from

Bonus categories punch above their weight. The sign-up bonus is a one-time first-year boost.

$640first year
Base spend points23.4%
Bonus category points14.1%
Sign-up bonus (Y1)62.5%

Net value: rewards minus annual fee

Year 1 typically wins thanks to the sign-up bonus. Year 2+ is the real test of whether the card earns its keep.

$490Year 1 net$90Ongoing net (Y2+)

How it works

What points are worth depends on the program and how you redeem them. This calculator values your points at the rate you enter and sets the rewards against the annual fee.

  1. 1Enter your typical monthly spending
  2. 2Add your card's points earn rate
  3. 3Include any bonus category spending
  4. 4Set the point value based on your redemption
  5. 5Compare rewards value to annual fee

The figures today

As of 7 November 2026, the lowest credit card purchase rate is 7.49%, from Unity Bank's Low Rate Visa Credit Card, while the typical best across 51 institutions is 12.49%.

Credit card rates

Worked examples

Rewards Card Value

$3,000 a month of spending, 1 point per dollar, with $500 of it earning 3 points. $150 annual fee. Points worth 0.7 cents each.

Monthly spending
$3,000
Points earned per $1 spent
1
Bonus category spend/month
$500
Bonus category multiplier
3
Card annual fee
$150
Point value (cents)
0.7
Sign-up bonus points
0

A year earns 30,000 base points plus 18,000 bonus points: 48,000, worth $336 at 0.7 cents. That's $186 more than the fee - if the balance is paid in full each month. The card breaks even at about $21,400 of spending a year.

Questions people ask

How much is a credit card point worth?
It depends on the program and the redemption - compare the dollars you'd get for the same number of points across options. Use the value of the redemption you'd actually make.
Are rewards cards worth the annual fee?
If the yearly value of the points is more than the annual fee - and you pay the balance in full each month - yes. The calculator shows the spending you'd need to break even.
Points or cashback - which is better?
Cashback is simpler and its value is fixed. Points can be worth more, but only if you plan how you redeem them. If you won't, cashback usually comes out ahead.

The terms, in plain English

Point Value
What each point is worth in dollars - varies from 0.5 to 2+ cents depending on redemption.
Bonus Category
Spending categories that earn extra points (e.g., 3x on dining).
Transfer Partners
Airlines/hotels you can transfer points to, often getting better value than cashback.

Official sources

Cashback Calculator

Compare points vs cashback

Annual Fee Calculator

Is your fee worth it?

Card Comparison

Compare rewards cards