Money Saving Expert Credit Card Calculator

Use this credit card calculator to determine how much you can save by using a rewards credit card strategically. Compare different card options, track your spending, and maximize your cashback or points.

How to Use This Calculator

Enter your monthly spending, select your credit card type, and see how much you can save. The calculator shows potential rewards and compares different card options.

Formula Used

Potential Savings = (Monthly Spending × Reward Rate) - Annual Fee

This calculator assumes you spend the same amount each month and maintain the card for at least a year.

How Credit Card Savings Work

Credit cards with rewards programs offer cashback, points, or miles for purchases. The key to saving is:

Choosing a card with a high reward rate for your spending categories
Using the card consistently for all eligible purchases
Paying the card in full each month to avoid interest
Considering annual fees only if the rewards outweigh them

Types of Credit Card Rewards

Cashback: Direct percentage of purchases returned as cash
Points: Earned that can be redeemed for travel, gift cards, or statement credits
Miles: Similar to points but specifically for travel

Worked Example

Suppose you spend $1,500 per month on groceries and have a 3% cashback card with a $95 annual fee.

Potential Savings = ($1,500 × 0.03) - $95 = $45 - $95 = -$50

This card would actually cost you $50 over a year, so it's not a good choice for this spending pattern.

Compare this to a 2% card with no annual fee:

Potential Savings = ($1,500 × 0.02) - $0 = $30

This card would save you $30 over a year, making it a better choice.

Frequently Asked Questions

How do I choose the best credit card for my spending?

Match your card to your spending categories. For example, if you spend a lot on groceries, look for a card with high rewards in that category.

What should I do with the rewards I earn?

For cashback, it's automatically credited to your account. For points/miles, redeem them for travel, gift cards, or statement credits.

Are there any hidden fees I should watch for?

Check for foreign transaction fees, balance transfer fees, and any other fees that might apply to your usage.