Credit Card Break-Even Calculator
Short answer
A card with a fee only makes sense if the rewards and perks you will really use are worth more than the fee. This calculator uses your own spend and the value you actually redeem, and shows the monthly spend at which the card breaks even.
Card pays for itself
+₹7,800 a year
- Rewards per year
- ₹9,600
- Perks you will use
- ₹3,200
- Net in year 1
- ₹9,800
- Break-even monthly spend
- ₹7,500
How it is calculated
- Yearly rewards = monthly spend × 12 × reward value %
- Perks = lounge visits × value per visit
- Net in year 1 = rewards + welcome benefit + perks − annual fee
- Net in later years = rewards + perks − annual fee
- Break-even monthly spend = (annual fee − perks) ÷ (12 × reward value %)
- Revolving interest, forex mark-up and late fees are not included. Pay in full every month.
Estimates for information only; not financial, tax or legal advice.
Worked example
Example (the default inputs): fee ₹5,000, spend ₹40,000 a month, 2% value back, a ₹2,000 welcome benefit and 4 lounge visits worth ₹800 each. Rewards are ₹9,600 a year and perks ₹3,200. Net in year 1 is ₹9,800 and ₹7,800 in later years. Break-even spend is ₹7,500 a month.
Frequently asked questions
Which reward rate should I enter?
The value you will really redeem, after caps, exclusions and the points value you actually get. Not the headline rate.
What does this ignore?
Interest, late fees, forex mark-up and any extra spending the card tempts you into. Pay in full every month, or the interest will wipe out the rewards.
Do lounge visits count if I do not travel?
Only count visits you will really use. Unused perks have no value.
Related perks
- Salary Account Credit Card and Lounge Perks
- Staff Flight Concessions and Corporate Travel Benefits
- Employer Group Health Insurance (Private Sector)
Government employee? Find your salary by pay level and see 8th Pay Commission scenarios.
Estimates for information only; not financial, tax or legal advice. Disclaimer.