Credit Card Sign-Up Bonus Break-Even Calculator

Validate whether a credit card welcome offer actually pays off once you factor in the annual fee and the rewards you would have earned elsewhere. Provide the minimum spend requirement, the cash value of the bonus, and the annual fee to see the total value created, incremental gain versus your fallback card, the monthly spend target, and how many cents of net value you pocket per dollar charged.

Total qualifying purchases required within the welcome-offer window.
Cash value of the welcome offer after converting points or miles.
Current annual fee, including any introductory rebate you expect to pay.
Defaults to 1.5% cash-equivalent earnings on the qualifying spend.
Defaults to 1.0%. Represents what you would have earned using your go-to card instead.
Defaults to 3 months if blank, matching most issuers' timelines.

Confirm issuer terms, taxes, and redemption availability before applying for new credit. This tool does not account for credit score impacts or opportunity cost from carrying a balance.

Examples

  • Example 1 — $4,000.00 spend requirement, $750.00 bonus, $550.00 fee, base earn left at 1.5%, fallback 1.0%, deadline default ⇒ Welcome offer more than offsets the fee. Total value after meeting spend: $260.00 USD | Incremental value versus your fallback card: $220.00 USD | Base rewards earned on required spend: $60.00 USD | Monthly spend needed within the window: $1,333.33 USD | Net value per dollar of qualifying spend: 6.50 cents per $1
  • Example 2 — $2,500.00 spend requirement, $150.00 bonus, $250.00 fee, base rate 1.0%, fallback left blank ⇒ Welcome offer fails to cover the fee. Total value after meeting spend: -$75.00 USD | Incremental value versus your fallback card: -$100.00 USD | Base rewards earned on required spend: $25.00 USD | Monthly spend needed within the window: $833.33 USD | Net value per dollar of qualifying spend: -3.00 cents per $1

FAQ

How should I value the welcome bonus?

Multiply the points or miles by the redemption value you realistically achieve, not the issuer's advertised maximum. Many travelers use 1.5¢ for transferable currencies and 1.0¢ for cash-back points.

What if the annual fee is waived in year one?

Enter $0 for the annual fee so the calculator reflects the promotional waiver. You can rerun the math with the standard fee to model year-two retention decisions.

Can I include authorized user or balance transfer fees?

Yes—add any upfront fees to the annual fee input so the net value captures all cash costs tied to opening the card.

How do category bonuses affect the calculation?

Increase the base earning rate if most of the qualifying spend falls into elevated bonus categories, or set it equal to the fallback rate if purchases will be unbonused.

Additional Information

  • Bonus value should reflect realistic redemption rates—aim for conservative cents-per-point estimates to avoid overvaluing the offer.
  • Incremental value compares the new card to your usual everyday card, isolating the true upside from chasing the offer.
  • Monthly spend target divides the requirement by the welcome-offer deadline so you can sanity-check cash flow or recurring bills.
  • Value per dollar helps compare multiple offers quickly—higher cents per dollar indicate a richer welcome bonus after fees.
  • All monetary results remain accurate for any currency if inputs use the same denomination.

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