Points Guy Best Credit Card Calculator

Finding the best credit card for earning points can be overwhelming with so many options available. Our Points Guy Best Credit Card Calculator helps you compare different cards based on your spending habits, rewards programs, and annual fees to determine which card will give you the most value.

How to Use This Calculator

To use the Points Guy Best Credit Card Calculator, follow these steps:

Enter your estimated monthly spending in the "Monthly Spending" field.
Select the type of rewards you're interested in (cashback, travel points, etc.) from the "Reward Type" dropdown.
Enter the annual fee for the card you're considering in the "Annual Fee" field.
Click the "Calculate" button to see which card is the best fit for you.

The calculator will then display the best credit card based on your inputs, along with an explanation of why this card is recommended.

How the Best Credit Card Calculator Works

The Points Guy Best Credit Card Calculator uses a simple formula to determine the best credit card for you:

Formula Used

Best Card = (Reward Rate × Monthly Spending) - Annual Fee

Where:

Reward Rate is the percentage of rewards you earn on your spending.
Monthly Spending is your estimated monthly spending on the card.
Annual Fee is the annual fee for the card.

The calculator compares different credit cards based on this formula and recommends the one that will give you the highest net rewards after accounting for the annual fee.

Assumptions

You will spend the full amount of your monthly spending estimate.
The reward rate and annual fee are accurate for the card you are considering.
You will keep the card for at least one year to benefit from the rewards.

Example Calculation

Let's say you spend $2,000 per month and are considering a credit card that offers 2% cashback and has a $95 annual fee.

Using the formula:

Example Formula

Best Card = (0.02 × $2,000) - $95 = $40 - $95 = -$55

In this case, the card would not be a good fit because the annual fee exceeds the rewards you would earn. The calculator would recommend a different card with a lower annual fee or higher reward rate.

Frequently Asked Questions

How do I know which reward type is best for me?: The best reward type depends on your spending habits and travel preferences. Cashback is good for everyday spending, while travel points are better for flights and hotels.
What if I don't spend the full amount of my monthly spending estimate?: The calculator uses your estimated spending to give you a general idea of which card might be best. If you spend less, you'll earn fewer rewards, but the card may still be worth it if the rewards are valuable to you.
How often should I review my credit card rewards?: It's a good idea to review your credit card rewards at least once a year, or whenever there are significant changes to your spending habits or available credit cards.
Can I use this calculator for business credit cards?: Yes, you can use this calculator for business credit cards by entering your estimated business spending in the "Monthly Spending" field.