What is net fee offset?
Net fee offset is what your card gave you minus what you paid in annual fees. A statement credit only counts if you used it. An $895 Platinum with $900 in redeemed credits roughly breaks even. The same card with $400 in redeemed credits has a net offset of -$495. The sticker fee never changes; the effective fee depends entirely on which credits get used before they reset.
What should I include in the math?
Statement credits you redeemed. Points or cash back earned on your actual spending (use realistic valuations). Perks you would have paid cash for: lounge visits, hotel nights, TSA PreCheck. Do not include credits you forgot to use or lounge access you never needed.
How do I run the numbers without a spreadsheet?
Use the annual fee calculator for a quick check. CardStack does this continuously when you track credits and connect spending via CardStack+. You see fee coverage per card, not a blog post saying "this card is worth it if you travel a lot."
When is a high annual fee still worth it?
When you consistently use the credits and earn rewards on spend that matches the card's bonuses. The Chase Sapphire Reserve makes sense if you use the travel credit, dining credits, and earn on travel. It does not make sense if you carry it for lounge access you use twice a year.
When should I downgrade or cancel?
Negative net fee offset two years running. No retention offer that changes the math. A no-fee card in the same family covers your credit needs. Read keep or cancel framework before you call the issuer.
Frequently asked questions
How do I calculate if my annual fee is worth it?
Subtract the statement credits and rewards you actually used from the annual fee. That is your net fee offset. If the number is positive, the card paid for itself. If negative, you paid to keep the card.
What counts toward offsetting my annual fee?
Statement credits you redeemed, welcome offer value (amortized), rewards earned on your spending, and perks you would have paid for anyway (lounge access, hotel status). Do not count credits you never used.
Does CardStack calculate annual fee ROI automatically?
Yes. CardStack shows net fee offset per card based on credits used and rewards earned from your real spending when you use CardStack+ with Plaid. Manual tracking works on the free tier too.
When should I cancel a card with an annual fee?
When net fee offset is negative two years in a row and you are not earning a retention offer worth keeping. Downgrade to a no-fee card in the same family when possible to protect your credit history.
Is the effective annual fee different from the sticker fee?
Yes. The sticker fee is what Amex or Chase charges. The effective fee is the sticker fee minus the credits and perks that actually got redeemed. The same $895 card can cost one cardholder close to $0 and another close to $500.