Credit-card rewards: calculate what you actually keep
Count rewards you can actually redeem from spending you would make anyway. Subtract account costs, relevant interest and extra spending undertaken to qualify. An advertised maximum reward percentage is not the return on every rand you spend. Start with your own transactions and programme rules, then calculate a net amount.
Map eligible spending before counting points
For each spending category, record whether it qualifies, its earning rate, any cap and the redemption value you would use. Do not value points at a premium reward you will never choose. Keep excluded transactions and tier requirements visible rather than multiplying all spending by a headline rate.
Subtract costs that belong to the decision
Compare with your actual alternative payment method. If you would open a new card solely for rewards, include its applicable account fee. If you already keep the card for another reason, show the whole cost and the incremental decision separately. The official card FAQ distinguishes fees and interest categories [1]; rewards arithmetic does not replace those charges.
Avoid paying to reach a tier
A planned purchase may qualify without changing your budget. An unnecessary purchase creates a cost even when it earns points. Compare the extra cost with the additional reward, not with the whole reward balance. Check expiry, redemption restrictions and rule changes before treating points as money already available.
A calculation you can check
Fictional month: redeemable rewards R120 − account cost R50 − applicable interest R90 = −R20 net. Add an unnecessary R200 purchase to reach a tier and the net effect worsens by its cost less any extra usable reward. These are made-up values, not an earning programme.
Questions about this decision
Can I use the advertised maximum percentage?
Only for spending that actually meets every applicable condition. Calculate eligible categories, caps and tier rules separately. A maximum is not evidence that your whole monthly spending earns at that level.
How should I value points?
Use the redemption you realistically choose and the value received after restrictions. Keep the conversion rule and date. Do not compare a cash reward with a points total before expressing both in the same usable rand value.
Should interest be deducted?
Include interest that belongs to the spending decision. Present the fee and interest calculation transparently. An attractive reward does not make a financed purchase cheaper if the borrowing cost exceeds the usable benefit.
What if rewards expire?
Use the value you expect to redeem within the actual rules, and identify unredeemed balances separately. Expired or unusable points should not be counted as a saving already realised in your household budget.
Does reaching a higher tier justify more spending?
Calculate only the incremental reward against the incremental cost. If the purchase is unnecessary, its full cost enters the decision. Do not compare an extra purchase with rewards earned earlier from unrelated spending.
Are store vouchers equivalent to cash?
Consider whether you would buy from that store, the purchase restrictions and any expiry date. A voucher that forces a higher-priced purchase or additional spending can have a lower useful value than its face amount.
How do I compare an existing card with a new one?
Show account costs and realised rewards for both using the same eligible spending basket. Add switching or extra account charges that actually apply. Do not invent a benefit for products whose current rules you have not checked.
Does SaveWise rank reward cards here?
No. This article supplies a calculation method without a bank ranking or a claim that one card wins for everyone. Current programme rules and your spending determine the inputs.