Low-APR card
or rewards card?
The right answer depends entirely on whether you carry a balance. Pay in full every month → rewards is a free 1.5-3% back. Carry $3K+ at 25% APR → interest costs more than rewards earn. Find your break-even.
Monthly spend ($)
Revolving balance ($)
Low-APR card rate (%)
Rewards card rate (%)
Rewards rate (% back)
Rewards card annual fee ($)
REWARDS CARD WINS
Rewards earned ($600) exceed the extra interest cost. Stay on rewards, but if your balance rises past $5,455, re-run the calculator.
Annual rewards earned
$600
net of fee
Extra interest on rewards
$495
25.0% vs 14.0%
Break-even balance
$5,455
below: rewards. above: low-APR
Annual gap (low-APR vs rewards)
-$105
rewards ahead
Math: annual_rewards = monthly_spend × 12 × rate − fee. Break-even_balance = annual_rewards ÷ (rewards_APR − low_APR). Above the break-even balance, extra interest exceeds rewards earned.