How Long It Takes for Costco’s Membership To Pay Off

It is quite understandable, if the cost of a Costco’s membership makes you think twice about signing up. After all, a Costco membership starts at $60, which is even more expensive than both a Sam’s Club and a BJ’s Wholesale Club membership.

Usually, both memberships start at $45 and $55 respectively, so you have the option of choosing which serves you more.

However, a Costco’s membership opens a wide door to savings on everything from apples to tires. Additionally, Costco’s house brand Kirkland Signature is every member’s favorite.

However, many consumers want to know how long will it take for the investment to start paying them off?

In this post, I will be sharing the details on each of the memberships Costco offers, what it will take to recover the fee to join and also, whether the expense is worth it. 

Costco Gold Star Membership

  • Costs: $60 per year

“This is the most basic membership tier and allows you to shop online and in warehouses,” says an expert. “It comes with two membership cards.”

This membership is good for Costco members who are seeking everyday value from Costco and do not want to pay the higher fee for the Executive membership.

How Long Will It Take To Pay Off?

However, as cheap as this Costco membership is, it is actually pretty easy for it to pay off fast. One good stock-up trip can make it absolutely worth it.

Let’s say you decide to purchase a big-ticket item like a TV, if the savings are $60 or more, you will recover the cost of your membership faster.

Discounted gift cards can get you closer to making sure the membership is worth it.

In some cases, you can purchase $200 worth of gift cards for $150, the savings on this purchase alone is nearly equal to the annual cost of a membership.

Costco’s Executive Membership

  • Cost: $120 per year

This type of membership has all the benefits of the Gold Star, and also allows you to earn up to 2% annual reward, plus you get to receive a Costco Services discount and a Costco Connection magazine every month.

This 2% reward allows you to earn up to $1,000 per year on eligible Costco and Costco Travel purchases.

According to the Costco website, members who spend approximately $4,170 per month on eligible purchases are eligible to reap the maximum reward of about $1,000 yearly.

How Long Will It Take To Pay Off?

Shopping at Costco often enough and the 2% reward will pay for the membership. However, this does not in any way mean you have to make weekly trips or something of sort.

It simply means, you have to be strategic about your purchases, and ensure you look beyond only food and groceries.

Larger purchases will obviously make it easier to reach higher reward amounts, but know that simple purchases like buying clothes, home goods and office supplies will help.

To help you recover the $120 membership fee, you would need an average of $500 per month in eligible purchases from Costco, according to their website.

Costco’s Business Membership

  • Cost: $60 per year

“Ramhold a business says, ‘This is the business version of the basic Gold Star membership. It enables you to shop online and in warehouses, and you can also buy items for resale’.

Let’s say you own a business and want to make purchase for items to resale, but you do not believe you will shop at Costco enough to maximize the 2% annual reward. Maybe, you think you may not find value in the other benefits the Business Executive membership offers then this type of membership is a better choice for you.

How Long Will It Take To Pay Off?

In as much as this tier of membership can be pretty easy to recoup the costs, it is important to remember that if you are buying something for resale purposes, you should consider, the cost of the membership as well as the items you’re selling.

If it is only purchasing items for business use, you can likely write off many of your purchases on your taxes as business expenses.”

Costco’s Business Executive Membership

  • Cost: $120 per year

“This membership includes all the benefits of the basic Business one and allows you to earn a 2% annual reward, receive a Costco Services discount and a Costco Connection magazine every month,” said Ramhold.

If you plan to or are likely to spend at least $500 a month on qualifying purchases, this membership will pay for itself with the 2% annual reward you will receive. And it will also give you access to other Costco Services discounts.

How Long Will It Take To Pay Off?

Similarly, this is another situation where you may be able to have a membership pay off. This is based on both savings and business expense write-offs.

Do you have to travel by car a lot for work? Then buying your tires from Costco with this membership will not only get you a bigger part of the annual reward, but you may also be able to write off said tire purchase on your taxes.”

Is the Costco’s Membership Fee Worth the Savings?

The question of “Whether a Costco membership fee is worth savings depends on which membership you choose and how you use it”.

Meanwhile, think of it this way: If you pay $60 for a Gold Star or Business Membership, you should be ready to save at least $5 per month by shopping at Costco to recover your membership fee.

If you pay $120 for an Executive or Business Executive membership, you’ll need to save at least $10 per month to make it worth it.

Alternatively, if you spend the least of about $500 monthly in qualifying for Costco purchases with either top-tier membership, you can earn the amount of the membership fee back in the exclusive 2% annual reward.


Please note that if you ever feel like the membership fee is not worth it or too much, bear in mind that experts have said that all memberships have a 100% satisfaction guarantee.

So, if you decide to cancel, you can do so at any point in time, and receive a refund upon doing so.

Helpful Guides

- Advertisement -

Related Stories