Credit Card Reward Calculation

[redrabbit]

How do you guys calculate the rewards percentage of the credit cards?
Let's assume you spend 30k with a card in 1 year and the annual fees is 500+gst= 590. Assuming you get 5% on all transactions, meaning you got 1500 as cashback.
Now, there are 2 ways of calculating
1. Reward%= (Cashback Amount-Fees)/Spends
Which means (1500-590)/30000= 3.03%
2. Reward%= Cashback Amount/(Spends+Fees)
Which means 1500/(30000+590)= 4.90%

As we are spending on card fees, doesn't it makes sense to calculate using method 2?

 

[great]

Seems you are new to cc world.
Once pro you will forget all this. Focus on bigger rewards. Game is how to maximize value of rewards.
Maths to Business.

 

[redrabbit]

I am fairly new to CC world, but I believe more in a no-nonsense card. In the reward points system, you need to track all your spending and check if the reward points are credited correctly or not. It takes too much time sometimes in checking the best offer available.
Also, you limit yourself to CC-partnered merchants while shopping and booking tickets.

That's why I was asking about the reward %. Maximizing the rewards need patience and time IMO, which is not wrong, but not my cup of tea.

 

[cyborg009]

@redrabbit

If you want a no nonsense card go for kotak white, Max cashback in an anniversary year is 27k on spends of 12 lakhs. No hassle of tracking reward points.