Set the rewards and perks you would really use against the annual fee and other costs to see whether a rewards card pays for itself.
Use this calculator to test whether a rewards, cashback or frequent flyer card is likely to pay for itself compared with a no-fee or low-fee card. First work out the expected rewards value per year: your yearly spending on the card, multiplied by the earn rate, multiplied by what one point is worth to you when you redeem it, plus the dollar value of perks you would genuinely use (and would otherwise have paid for). Then enter the share of that value you expect to lose, the annual fee and any other extra costs.
Formula: net value = rewards value − (rewards value × share lost) − annual fee − other costs. The first result shows the value lost plus the fee; the second shows what is left.
Worked example (illustrative): you put $30,000 a year on a card earning 1 point per dollar and you redeem points at about 1 cent each, so rewards are worth about $300. You expect to lose 10% ($30) to expiry or poor redemptions. With a $199 annual fee and no interest, the net value is $300 − $30 − $199 = $71 a year. If you carried a balance and paid $400 interest in the year, enter it as other costs: the net becomes −$329.
Limits: point values vary widely by redemption and program, and programs can change earn and redemption rates. Earn rates are often lower on some spending (for example government payments) and capped. See annual fee versus rewards value and valuing frequent flyer points. General information, not financial advice.
Card Costs, Comparisons and 2026 Rules
How to tell whether a rewards or frequent flyer card's annual fee is worth paying in Australia, with break-even spending, perk valuation and illustrative worked examples.
Worked Examples and Checklists
Three illustrative Australian credit cards compared over two years for a cardholder who pays in full and one who carries a balance, with every step of the arithmetic shown.
Card Costs, Comparisons and 2026 Rules
How to compare cashback, bank points and frequent flyer credit cards in Australia in 2026 by net value after fees, interest and redemption, plus the rules that changed this year.
Card Costs, Comparisons and 2026 Rules
How foreign transaction fees, currency conversion and dynamic currency conversion work on Australian credit cards, and when they cancel out rewards points on overseas spending.
Worked Examples and Checklists
How to work out what frequent flyer and credit card points are worth in Australia, in cents per point, after taxes and carrier charges, transfer ratios and the cash fare you would really pay.
Pitfalls, Protections and Official Sources
How credit card and frequent flyer points can expire or lose value in Australia, what to do when a program changes, and how to cancel or downgrade a rewards card without forfeiting points.
