Reward Points Opportunity Cost Calculator

What is the Reward Points Opportunity Cost Calculator?

Reward points look generous, but their value depends on how much a point is worth when redeemed, how many you actually use and the card's annual fee. A simple cashback card is often better for everyday spending.

Enter your monthly spend, points earned per ₹100, the value of a point, how many points you actually redeem, and the fees of both cards. This credit card rewards calculator shows the net yearly value and effective return of each.

How to use the Reward Points Opportunity Cost Calculator

1. Monthly Card Spend (₹) (sample: 50,000)
2. Reward Points per ₹100 Spent (sample: 2)
3. Value of One Point on Redemption (₹) (sample: 0.25)
4. Share of Points You Actually Redeem (%) (sample: 80)
5. Rewards Card Annual Fee (₹, GST added) (sample: 1,000)
6. Alternative Cashback Card Rate (%) (sample: 1.5)
7. Cashback Card Annual Fee (₹, GST added) (sample: 500)
8. Press Compare Rewards (results also refresh as you type). The result card shows the Better Card for Your Spending, along with Rewards card – net value per year, Cashback card – net value per year, Rewards card effective return and Cashback card effective return.

Formula used

Net rewards value = Spend ÷ 100 × Points × Point value × Redemption % − Fee × 1.18

• Cashback value = spend × cashback % − fee × 1.18

Points on excluded categories (fuel, rent, wallets) and expiry reduce the real value.

Worked example

These are the sample values already filled in the calculator above, and the result it returns for them:

Tips for using the Reward Points Opportunity Cost Calculator

• Point values vary widely: vouchers may give ₹0.20–0.50 a point, air miles more.
• Many annual fees are waived above a spend threshold.
• Never carry a balance for rewards — interest wipes out any benefit.