Amex Everyday cash back vs Amex Cashback (with fee) Optimum spend?

valmiki

Hi, I'm struggling to work out what the minimum spend should be to make it worth paying the fee.

I currently have the Amex Cashback with fee, rules being 0.75% cashback up to £10,000/yr, 1.25% cashback above, £25 fee.

The other option is Amex Everyday, 0.5% cashback on first £10,000 spend, 1% above, no fee.

I'm ignoring introductory offers as I've had the card for a while.

Has anyone done the calculation already? I was hoping MSE would have noted it in the comparison table (!) but I don't see it.

DullGreyGuy

well £10,000 x 0.75% = £75.00 - £25 = £50.00  whereas £10,000 x 0.5% = £50.00 

So breakeven is at £10k and profit is over £10k assuming all other rules are the same 

valmiki

DullGreyGuy said:

well £10,000 x 0.75% = £75.00 - £25 = £50.00  whereas £10,000 x 0.5% = £50.00 

So breakeven is at £10k and profit is over £10k assuming all other rules are the same 

Well that was pretty straightforward! Thank you 👍

WillPS

This chart assumes 1 Nectar point is equal in value to 0.5p in cash. If you disagree with the assumption, ignore the ARCC and Nectar columns (but do give it some thought as for more average spend the Nectar card is the strongest offer available; especially in Y1 when the fee is waived).