Most people have a vague sense that their rewards card is 'good' or 'worth it' — but few have actually done the math. This worksheet provides a structured framework for calculating your card's true net value: what you earn minus what you pay.
The result may surprise you. Many cardholders who carry balances are paying far more in interest than they earn in rewards. And many cardholders with annual fee cards are paying for benefits they don't use.
Step 1: Calculate Your Annual Rewards Earned
Review your past 12 months of credit card statements (or use your issuer's annual spending summary) to calculate your total rewards earned.
For cash back cards: your total cash back earned is stated on your statements.
For points cards: multiply your total points earned by your typical CPP (cents per point). If you redeem for statement credits at 1.0 CPP, use 1.0. If you typically redeem for travel at 1.5 CPP, use 1.5.
Annual Rewards Value
Annual Rewards Value = Total Points Earned × CPP ÷ 100Where:
Total Points Earned=Points earned in the past 12 monthsCPP=Your typical cents per point for your preferred redemptionExample
50,000 points × 1.5 CPP ÷ 100 = $750 in rewards value
Step 2: Calculate Your Annual Costs
Your annual costs include the annual fee, any interest charges, and any fees paid (late fees, foreign transaction fees).
Annual fee: The stated annual fee.
Interest charges: Review your statements for the past 12 months and sum all interest charges. If you always pay in full, this is $0.
Other fees: Late fees, foreign transaction fees, cash advance fees.
Annual Cost Worksheet
- ✓Annual fee: $___
- ✓Total interest charges (past 12 months): $___
- ✓Late fees: $___
- ✓Foreign transaction fees: $___
- ✓Other fees: $___
- ✓TOTAL ANNUAL COSTS: $___
Step 3: Calculate Net Value
Net Value = Annual Rewards Value + Annual Benefit Value − Annual Costs
Annual Benefit Value includes the dollar value of benefits you actually used in the past 12 months: travel credits you redeemed, lounge visits you made, insurance claims you filed, etc. Do not include benefits you didn't use.
Net Card Value
Net Value = Rewards Earned + Benefits Used − Total CostsWhere:
Rewards Earned=Dollar value of rewards earned in past 12 monthsBenefits Used=Dollar value of benefits actually used (not theoretical)Total Costs=Annual fee + interest + all feesExample
$750 rewards + $300 travel credit used − $95 annual fee − $0 interest = $955 net value
Step 4: Interpret Your Results
Positive net value: Your card is earning its keep. The larger the positive number, the better the card is performing for your situation.
Near-zero or negative net value: Your card is not earning its keep. Consider: - Switching to a no-fee card with a simpler rewards structure - Calling the issuer to request a retention offer (many issuers will offer a statement credit or bonus points to retain cardholders who are considering canceling) - Downgrading to a no-fee version of the same card (preserves your credit history and account age)
Negative net value due to interest: If interest charges are the primary cost, the card type is not the problem — the balance is. Prioritize debt elimination before optimizing rewards.
Tip
Before You Cancel
Before canceling a card with a negative net value, call the issuer and ask for a retention offer. Many issuers will offer a statement credit, bonus points, or annual fee waiver to retain cardholders. This is a simple, low-effort way to improve your card's net value.