Does the annual fee pay off?

Updated October 22, 2026

Whether a pricier card is worth it comes down to one number: how much you need to spend each month for your miles to cover the annual fee.

The formula

Break-even monthly spend = annual fee ÷ value per mile ÷ earn rate ÷ 12

Try it with your own numbers below.

Annual fee$Miles per $1Value per mile (¢)

Break-even monthly spend$270Spend $270 or more a month and your miles cover the annual fee. Perks such as lounges are not included.

If you spend well above the break-even amount, a high-fee card can still come out ahead.
Sign-up bonuses often apply only in the first year, so leave them out of the yearly math.
Count perks such as lounges or insurance only if you actually use them.

Try it with your spendingEnter your monthly spend to see yearly miles and net value for every card.