Credit Card Comparison Calculator

How it works

Net annual cost = average carried balance × APR + annual fee − 12 × monthly spending × rewards rate · break-even balance = (fee B − fee A − annual spending × (rewards B − rewards A)) ÷ (APR A − APR B)

The best credit card depends on how you use it. If you carry a balance, the APR usually matters most; if you pay in full every month, interest is zero and the card with the best rewards after its annual fee wins. This calculator nets interest, fees and rewards into one annual cost for each card and finds the carried balance at which the answer flips. Interest is approximated as balance × APR for a year; issuers compound daily, so the true figure is slightly higher.

Worked example

Carrying a 2,000 balance and spending 1,500 a month (18,000 a year): Card A at 24.99% with no fee and 1.5% rewards costs 499.80 − 270 = 229.80 a year; Card B at 19.99% with a 95 fee and 2% rewards costs 399.80 + 95 − 360 = 134.80. Card B is cheaper by 95.00. The break-even balance is (95 − 18,000 × 0.5%) ÷ 5% = 100 — above that, Card B’s lower APR wins.

Sources: CFPB — Credit card agreement database · Wikipedia — Credit card interest

Frequently asked questions