Rewards Calculator
Cashback vs points vs miles — which card pays the most for your spending?
Annual rewards earned
$480
Rewards are worthless if you carry a balance — 2% cashback < 22% APR. Pay in full every month.
Different reward cards pay out in different currencies, cashback, points, or miles, and they are not worth the same per dollar. This calculator converts each into real dollars based on your actual spending so you can compare them fairly.
The honest comparison is redemption value, what your rewards are actually worth when you use them, minus any annual fee. A card that earns more points is not automatically better if those points redeem for less or the fee eats the difference.
Enter your spending by category and each card's earn rates and fee to see net annual value, ranked from most to least rewarding.
How this calculator works
For each card, the tool multiplies your spending in each category by that card's earn rate, values the result, and subtracts the annual fee. Cashback is simplest: 2% flat on $25,000 of spend is $500, minus a $0 to $95 fee. Points and miles depend on redemption value, often quoted in cents per point: 3x points on dining that redeem at 1 cent each is effectively 3% back, while the same 3x redeemed at 1.5 cents is 4.5%. Net value = sum of (category spend x earn rate x redemption value) minus annual fee. The comparison is only as honest as the redemption value you assume, so the tool leans toward conservative, widely-achievable rates rather than best-case transfer valuations, which most people never fully capture. Miles in particular vary widely and are easy to overstate, so a modest per-mile value gives a more realistic picture.
What affects the number
- Redemption value per point or mile: a point is only worth what you get for it; 1 to 2 cents is a realistic range, and miles are easy to overvalue.
- Your spending mix: category cards (dining, groceries, gas, travel) only beat a flat card if you actually spend heavily in those categories.
- Annual fee: subtract it directly; a card needs to out-earn a no-fee card by more than its fee to come out ahead.
- Flat vs category earn: a flat 2% card is simple and strong; tiered cards can beat it only where their bonus categories match your spend.
- Caps and limits: many bonus rates apply only up to a quarterly or annual spending cap, after which earning drops to the base rate.
- Sign-up bonuses: a large first-year bonus can dominate year-one value but should be separated from the ongoing earn rate for a fair long-term comparison.
Frequently asked questions
Is cashback better than points or miles?
Cashback is the most predictable because a dollar is always a dollar, while points and miles vary with how you redeem them. Points and miles can beat cashback when redeemed well, but they can also be worth less than 1 cent each. For most people, comparing the realistic redemption value minus the annual fee is what matters, not the reward type.
How do I compare a card with an annual fee to a no-fee card?
Calculate each card's net value: total rewards earned minus the annual fee. A fee card only wins if its extra rewards on your spending exceed the fee. For example, a $95 card that earns $250 in rewards nets $155, so it beats a no-fee card only if that no-fee card would earn less than $155 on the same spend.
How much is a credit card point or mile worth?
It depends on the program and how you redeem. Many points redeem for around 1 cent each as cash or statement credit, and travel redemptions can be higher but are not guaranteed. Miles are especially variable, so using a conservative value like 1 to 1.5 cents avoids overstating a card's real payout.
Do rewards make sense if I carry a balance?
Usually not. Reward cards carry high APRs, often 20% or more, so interest on a carried balance quickly outweighs 1% to 5% in rewards. If you do not pay in full each month, paying down the balance is worth far more than any rewards you earn.
This calculator provides general estimates for educational purposes only and is not financial advice. Your actual costs and credit outcomes depend on your specific card terms, issuer, and situation.