Credit Card Bonus Calculator
Is that credit card signup bonus actually worth it? Calculate the true first-year value after annual fees, minimum spend rewards, and perks. See if the card is worth keeping long-term.
The perks exceed the annual fee, making this card worth keeping.
| Year | Year Value | Cumulative Value |
|---|
After Year 1, the ongoing value is perks minus annual fee each year.
| Item | Value |
|---|---|
| Signup Bonus (60,000 pts) | $900 |
| Rewards from $4,000 spend | $120 |
| Perks You'll Use | $100 |
| Annual Fee (Year 1) | -$95 |
| Opportunity Cost (vs your current card) | -$80 |
| First Year Net Value | $945 |
- Watch for application rules: Some issuers limit approvals based on recent accounts opened (e.g., 5 cards in 24 months). Research your target card's rules before applying
- Never carry a balance - Interest rates of 20-30% APR will destroy any bonus value
- Set calendar reminders for minimum spend deadline, annual fee date, and recurring perks (quarterly credits, semi-annual benefits, etc.)
- Space applications 60-90 days apart to minimize credit score impact and avoid velocity denials
- Check issuer restrictions: Some bonuses are once-per-lifetime, others have waiting periods (24-48 months). Watch for "popup" warnings that may block your bonus - if you see one, wait and try for a better targeted offer via mail or email
- Consider product changes to no-fee cards instead of canceling (preserves credit history and may keep you eligible for future bonuses)
How We Calculate Credit Card Bonus Value
Credit card signup bonuses can be worth hundreds or even thousands of dollars, but the true value depends on several factors beyond just the bonus points.
The opportunity cost represents what you'd earn on your current card during the minimum spend period. If you're spending $4,000 on a new card earning 2x points worth 1.5¢ each, but your current card earns 2% cashback, the opportunity cost is $80 ($4,000 × 2%).
Perks value is subjective - only count perks you'll actually use. A $300 travel credit is worth $0 if you never travel through that portal.
Double-Dipping Perks
Some credit card perks can be used twice before the second annual fee posts. This is called "double-dipping" and happens because benefit years are often staggered from your cardmember anniversary. For example, if you open a card in March and the benefit year runs January-December, you could use a $300 travel credit in December of Year 1 and again in January of Year 2 - then cancel before your second annual fee posts in March.
Check the "2x" box next to any perk you can double-dip. This adds the perk value twice to your Year 1 calculation, reflecting the true first-year value before you'd need to pay another annual fee.
Year 2 Considerations
After the first year, the signup bonus is gone. The card's ongoing value = perks you'll use minus the annual fee. If this is negative, consider:
- Downgrading to a no-annual-fee version of the card
- Using a retention offer (call and ask)
- Canceling before the fee posts (but this affects credit score)
Disclaimer: This calculator is for educational purposes only. Credit card terms change frequently. Always read the card's terms and conditions. Signup bonuses may be taxable in some cases - consult a tax professional. This is not financial advice.
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