Use a no-fee alternative as the baseline
A card covering its own annual fee does not necessarily make it the better choice. Compare its estimated net value with what another card could return on the same purchases. Count usable benefits, subtract the annual fee and account for any other costs you know about.
A simple annual-fee calculation
Hypothetical eligible annual spending: $18,000, with no caps, welcome bonuses or credits.
A no-fee card earning an assumed 2% returns $360. A card earning an assumed 3% returns $540, or $445 after a $95 annual fee.
The card with a fee is ahead by $85 in this example. The relevant advantage is $445 − $360, not the entire $540 in rewards.
Find the break-even spending
If the only difference is an extra 1 percentage point of rewards, a $95 fee needs $95 ÷ 0.01 = $9,500 in eligible annual spending to break even against the no-fee alternative. This shortcut assumes the extra rate applies to every dollar counted and ignores caps and other differences.
If the fee card also provides $40 of additional savings you would already use, the remaining fee to offset is $55. Under the same assumptions, the break-even spending becomes $5,500. A real card's different categories and caps may require a fuller calculation.
Give credits an honest value
MyCardTailor starts credits and personal perks at $0. A credit is not automatically worth its advertised face value. Count only incremental savings after enrollment, merchant and booking requirements. Spending more just to use a benefit can reduce its practical value.
Check the renewal-year result
Use the Ongoing year view to remove welcome and first-year promotions. Compare that result with Year 1 before deciding whether a fee looks worthwhile under your assumptions.
These comparisons assume you pay in full and exclude interest and unentered costs. The CFPB explains that, when a card offers a purchase grace period and you are not carrying a balance, paying the balance in full by the due date can avoid purchase interest. See its credit card grace-period explanation. Rewards estimates do not assess affordability or approval.
Try it with your own spending
Use the credit card rewards calculator to compare the included cards. Choose Dollar value only to order cash-back and travel cards together by estimated net dollars. Each of the top three cards is an alternative, not a combined wallet.
Read the calculation methodology for valuations, caps, acceptance restrictions and bonus rules, or explore the other rewards guides.
Page updated October 13, 2026