Costco is an American membership-only warehouse club chain headquartered out of Issaquah, Washington. They have over 780 locations throughout the United States, Canada, Mexico, United Kingdom, Japan, South Korea, and several other countries. Costco competes with Walmart's Sam's Club and BJ's Wholesale Club.
Costco Credit Card Calculators
Learn about the earning rates, benefits, sign up bonus, and annual fees of Costco credit cards. Calculate how much cash back you can earn with Costco based on your spend and compare the results side by side any cards featured on the site.
Costco cash back can be earned by having Costco Executive membership or by using a Costco credit card to make purchases. It is possible to accrue cash back as both a cardholder and Executive membership member. If you spend a good deal of money at Costco, I recommend going for both.
Costco offers a standard membership and an Executive membership for both personal and business use. The standard Costco membership for personal use is called Gold Star and grant you the ability to make purchases inside of Costco Wholesale locations. It also includes a free Spouse card. The standard Business membership is the same except that you have the ability to add employees to your membership and you can purchase items with Costco for resale.
The Costco Gold Star Executive membership for personal use is a higher form of membership that grants the same benefits of basic Gold Star membership along with earning 2% back on qualifying Costco purchases and receiving extra benefits on various Costco services. The Business Executive membership is the same except you can add people to your membership and purchase items with Costco for resale.
Is Costco Executive Membership Worth It?
For an additional $60 per year, you'll earn 2% cash back versus earning nothing at all. In order to make up that $60, you would need to spend $3,000 per year or $250 per month at Costco. If you spend more than that, then the personal or business Executive account is worth it. If you don't spend more than that, the Executive membership not be worth it unless you factor in additional value from the other perks that come with membership (discounts, extra benefits, etc).
Earning Costco Rewards w/ Executive Membership
The 2% back you receive as a Costco Executive or Costco Business Executive member is based on pre-tax purchases of most merchandise, including Costco Travel. This is through:
- Front-end registers at Costco Wholesale warehouses in Canada and the United States
- Online at Costco.ca
- Costco.com (if shipped with a valid U.S. address)
The 2% reward is capped at $1,000 during any 12-month period. This means you can earn rewards on up to $50,000 in rolling 12-month spend. Anything spent over $50,000 will earn you 0%. You'll only receive the 2% reward if you're an Executive Member. Downgrading your membership to Gold Star or Business status or canceling your membership and receiving a refund of membership fees will void your rewards.
The 2% back that you earn throughout the year on your spend with Costco is mailed out with membership renewal notices, once per year. This means you'll get all of your rewards once and not per statement period like most rewards cards.
Costco Executive Membership Earnings Calculator
If you want to estimate how much you can earn with Executive membership based on your spend at Costco, you can use the calculator listed below. Enter how much you spend at Costco per month and the calculator will output how much you can earn in a 12-month rolling period. Remember that you can only earn up to $1,000 in Rewards per 12-month rolling period which is hit at $50,000 in 12-month spend or around $4,167 per month.
If you earn $60 or more in cash back annually based on the calculation above, the Executive membership is the better option.
How many family members can be on a Costco card?
A total of two people can be on a Costco Membership. The primary member and the person who receives the free Spouse card.
How do you obtain your rewards earned with Costco Executive membership?
Cash back rewards earned with Costco Executive membership is mailed to you in the form of an annual reward certificate with your membership renewal notice.
What are the benefits of Costco Executive membership?
Costco Executive membership allows you to earn 2% cash back on eligible purchases made in-store and online with Costco. It also grants extra benefits on certain Costco services.
Is Costco Executive membership worth it?
If you spend more than $3,000 per year at Costco (or $250 per month), Costco Executive membership will be worth it. Don't forget it also comes with other small perks that should be taken into consideration as well.