Is Costco Executive Membership worth it? The break-even math in CAD

Costco Executive membership is worth it if your household spends more than about $3,250 a year ($271 a month) on purchases that earn the reward. Below that, Gold Star is cheaper. Our default for most households is Gold Star, with an upgrade once your receipts show you are over the line.

The decision is pure arithmetic: a fixed $65 extra against a 2% return. Everything below is that calculation, plus the rules that decide which purchases count.

How much does Costco Executive membership cost?

Executive costs $130 a year before tax, against $65 for Gold Star.

Costco raised fees on September 1, 2024: Gold Star from $60 to $65, Executive from $120 to $130, and the yearly reward cap from $1,000 to $1,250.

How much do you need to spend for Executive to pay off?

You need $3,250 of eligible spending a year: the $65 upgrade divided by the 2% reward.

The reward stops growing at $1,250, which takes $62,500 of eligible spending. Very few households get near it. To run your own number, use the Executive calculator.

Which purchases earn the Executive reward?

Purchases through the front-end registers at Costco warehouses in Canada and the U.S. earn it, and so do Costco.ca orders and Costco Travel, according to Costco's membership conditions. They exclude gas stations, pharmacies, food courts, optical centres in Quebec, tobacco, services (including auto services), membership fees, deposits and taxes, plus purchases restricted by law and other categories Costco names from time to time. If most of your Costco spending is gas, pharmacy or the food court, the upgrade is hard to justify.

When do you get the Executive reward?

Once a year, as a reward coupon mailed with your membership renewal notice. It goes to the primary member and is spent in the warehouse: Costco's terms say it can't be used at the gas station or online at Costco.ca. It is not cash, so it only pays off if you keep shopping there.

What are Costco Executive coupons?

"Executive coupons" usually means the 2% reward, which arrives as a reward coupon rather than cash. From Costco Canada's membership FAQ: it's sent about 2 months before your membership expires, in the primary member's name, and covers 12 months of eligible purchases by the primary member and the household cardholder (affiliates on a Business membership don't count). The primary member can spend it on merchandise at a warehouse or use it to renew the membership. For the Executive coupon book and Costco.ca membership codes, see Costco coupons and promo codes in Canada. Costco's separate coupon mailers go to the primary member; if they stop arriving, Costco lists the usual reasons: you opted out, your address is wrong or changed in the last 3 months, you joined in the last 2 months, your membership expired, or someone else at your address already gets one.

Can you try Executive and switch back?

Yes. Costco's membership conditions say: "We will cancel and refund your membership fee at any time if you are dissatisfied." You can also return to Gold Star at renewal. Ask at the membership counter how the refund applies to an upgrade before you decide.

Does Executive stack with the Costco Mastercard?

Yes. The Executive reward comes from Costco and the CIBC Costco Mastercard pays its own cash back from CIBC, so one purchase can earn both. That pairing is why heavy Costco shoppers carry both; our Costco Mastercard cash back review runs the card's numbers.

Should you upgrade to Executive?

Upgrade if you spend more than about $3,250 a year at the registers and on Costco.ca (not counting gas, pharmacy or the food court), buy big-ticket items like appliances, TVs or tires there, and will keep shopping there all year.

Stay on Gold Star if you mostly go for gas, shop a few times a year, or would rather keep $65 now than wait a year for a store coupon. That is the trade: a certain $65 today against a reward you only collect if your spending is high enough.