Find what your card really returns each year after point value, caps, excluded spends, redemption fees and the annual fee.
Quick answer
A card's real return = rewards actually earned (after exclusions and caps) × what each point is worth − redemption fees − annual fee with 18% GST, divided by what you spend. A card advertising "2 points per ₹100" with points worth ₹0.25 returns 0.5%, not 2%, before fees.
Credit card reward value calculator
See what your card really returns each year after caps, point value, redemption fees and the annual fee.
Point value depends on how you redeem: statement credit, vouchers and air miles often differ, so check the bank's redemption catalogue. Excluded spends usually include fuel, rent, wallet loads and government payments (check your card's MITC). GST of 18% applies to card fees.
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Why the headline rate misleads
- Point value: a point can be worth ₹0.20 as a voucher and ₹1 as air miles. Use the value for the way you actually redeem.
- Exclusions: fuel, rent, wallet loads, insurance, utilities and government payments often earn less or nothing. Check your card's MITC and reward terms.
- Caps: many cashback cards cap monthly cashback, so heavy spenders earn a lower effective rate.
- Fees: the annual fee and redemption fees come out of your rewards. GST of 18% applies to card fees.
More: The 5% cashback lie · Reward points vs cashback · Annual fee break-even calculator
FAQs
What is a good effective reward rate in India?
Most everyday cards return 0.5–1.5% after exclusions and point value. Above 2% on your real spending mix is strong.
Should I count welcome benefits?
Only in the first year, and only if you would use them anyway.
Where do I find the point value?
In the bank's reward redemption catalogue or the card's terms. Divide the rupee value of a redemption by the points it costs.