Credit Card Annual Fee Break-even Calculator
A paid card is worth it only if its extra rewards and perks cover the annual fee. Find the yearly spend at which a paid card beats a free one, and whether it's worth it for you.
The break-even formula
Break-even spend = (annual fee × 1.18 − value of perks) ÷ (paid card reward rate − free card reward rate).
If the fee is waived at a spend threshold you'll reach anyway, the fee drops out and the paid card wins as long as its reward rate is higher.
Count only perks you'll use
Lounge access is worth nothing if you rarely fly. Value perks at what you would otherwise pay, not at the bank's advertised value.
FAQs
Is GST charged on credit card annual fees?
Yes, 18% GST is charged on joining and annual fees.
Can I ask the bank to waive the annual fee?
Often, yes. Banks frequently waive or reverse the fee for customers who spend regularly, especially if you call before the fee is charged.