Find the yearly spend at which a paid credit card's extra rewards cover its annual fee plus GST, against no card and a free card.
Quick answer
Break-even spend against a free card = (annual fee × 1.18 − value of benefits you use) ÷ (paid card's reward rate − free card's rate). A ₹2,500 card earning 3.3% against a free card earning 1% needs about ₹1.28 lakh of yearly spend before the fee pays for itself.
Annual fee break-even calculator
Find the yearly spend at which a paid card's rewards cover its fee, and compare it with a free card.
Use the effective reward rate after caps, exclusions and point value, not the headline rate. The Reward Value Calculator works it out. Benefits count only if you would really use them.
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How to use the result
- Compare against the card you would use otherwise, usually a lifetime-free card, not against no card.
- Use effective reward rates. Work them out with the Reward Value Calculator.
- If the card waives its fee above a spend threshold and you cross it, the fee drops out entirely.
Related: Lifetime-free RuPay cards · Milestone rewards explained
FAQs
Is GST charged on the annual fee?
Yes. 18% GST applies to credit card fees and charges.
Should lounge access count?
Only at the price you would otherwise pay, and only for visits you would really make.