How to compare your credit cards
- Replace the example cards with your cards' annual fee, waiver threshold and reward rates from their fee schedules.
- Set each card's bonus category and what one reward point is worth when you redeem it.
- Enter your typical monthly spending in each category.
- Add lounge visits you would really use and what one is worth to you.
- Read the ranking, net value and the spend each card needs to cover its fee.
How net value is worked out
Net value = Σ (spend × points per ₹100 ÷ 100) × value per point + lounge value − fee × 1.18
The fee drops out if your yearly spend reaches the waiver threshold. Bonus categories use their own points rate.
Spend needed to cover a ₹2,500 fee
With 18% GST the fee is ₹2,950. Rewards alone pay for it at:
| Reward rate | Yearly spend | Monthly spend |
|---|---|---|
| 0.5% | ₹5,90,000 | ₹49,167 |
| 1% | ₹2,95,000 | ₹24,583 |
| 2% | ₹1,47,500 | ₹12,292 |
| 3% | ₹98,333 | ₹8,194 |
Free 1% card vs ₹2,500 card at 2%
Net yearly value at different monthly spends, with no fee waiver:
| Monthly spend | Free card (1%) | Fee card (2%) | Better |
|---|---|---|---|
| ₹10,000 | ₹1,200 | -₹550 | Free card |
| ₹25,000 | ₹3,000 | ₹3,050 | Fee card |
| ₹50,000 | ₹6,000 | ₹9,050 | Fee card |
| ₹1,00,000 | ₹12,000 | ₹21,050 | Fee card |
Rewards only pay if you clear the bill in full. To see what carrying a balance costs, use the credit card interest calculator.
Frequently asked questions
How do I work out a credit card's reward rate?
Multiply the points you earn per ₹100 by the rupee value of one point. For example, 4 points per ₹100 at ₹0.25 a point is a 1% reward rate. The value per point depends on how you redeem: statement credit, vouchers and air miles often differ.
Is a credit card with an annual fee worth it?
Only if the rewards and benefits you actually use exceed the fee plus 18% GST, or if you will spend enough to get the fee waived. The calculator shows the spend at which rewards alone cover the fee.
Is there GST on credit card annual fees?
Yes. Annual and joining fees, like other card charges, attract 18% GST. A ₹2,500 fee costs ₹2,950.
How does a fee waiver work?
Many cards reverse the renewal fee if you spend more than a set amount in the previous card year. Some spends, such as rent, wallet loads or fuel, may not count; check your card's terms.
Why doesn't this tool list real credit cards?
Fees, reward rates, caps and exclusions change often and vary by card variant. Rather than show figures that may be out of date, the tool lets you enter the terms from your own card's schedule of charges.
Should I count lounge access?
Only for visits you would actually make, valued at what you would otherwise pay. Many cards now need a minimum spend in the previous quarter to unlock lounge visits.