This resource is an article in itself. I have listed all the calculations that I created and used for the PC Optimum Points Part 3: Maxing Out post. I’ve made these available for transparency purposes, and that putting all this math in the Part 3 article would have bogged it down more than the Swamp Thing (Get it? :p) Think of this as the “Extras” feature on a DVD – it’s longer than the features section on the LOTR: Extended Editions, hahaha. Nah, it’s not that long, but it’s still lengthy.
This page is not necessarily meant to be read from top to bottom. I mean, you can do that if you really want to (Yikes!), but it’s meant more as a reference for those who are curious how I got the “real cash back” percentages that I spoke of. It’s also not the prettiest thing I’ve made, but as a reference it should get the job done.
It’s divided into five sections.
The first section is a colourful chart of various PC Optimum Points strategy calculations (ie: 20x the points, PC Mastercards, etc) and what their return is based on a regular redemption level.
The second section is is like the first, but based on the bonus redemption level where 200,000 points is equivalent to 300,000 points.
The third section is a small chart on the effect of taxes on your real cash back returns when purchasing non-essential (taxed) goods.
The fourth section is a couple of additional charts on the PC Insiders Subscription that I didn’t include in the main article for brevity’s sake. Namely, a chart about Net Bonus Points and one about Payback Time.
The fifth and final section consists of half of this entire page. It was literally a pain in the butt to write. Initially I didn’t plan on delving into PC Insiders, but when I decided to try, I entered into hole rabbit hole of pain. Luckily, I learned some things about Insiders that made me detest it even more! This section has all the PC Insiders Calculations for multiple monthly spending levels, percentage mixes of PC/Non-PC goods, and real cash back calculated at regular and bonus redemption returns.
Section 1
Section 2
Section 3
Section 4
You also may not have noticed yet, but I’ve spent WAY too much time on this, hahaha. And as I mentioned at the very beginning, it’s not pretty… Enjoy!
Section 5
A Note on the Break Even point…
The chart above shows payback time for Insiders depending on where you fall in your grocery shopping habits. I’ve detailed the calculations further below. The Payback time for those calculations are based on reaching a spending threshold of $1479. Therefore, I’ve just divided the yearly spending by that number, leaving me with the payback time in months. For the bonus redemption sections of the below calculations, I didn’t bother with payback time. It should be a bit shorter, but not huge amounts so.
Each section also has a “Discount” line. In case it’s not clear, this is supposed be the percentage that you paid for all your goods, if all your goods were originally worth 100%. Ie: You got bought your goods for 95% of the original 100% price. The Real Cash Back percentage is naturally how much you got off of the original 100% to get that discount. So in that example, the RCB would be 5%.
A Note on Payback time…
Since the Insiders annual fee is ~134, you need to spend ~1344 to get $134 worth of points to make up this fee. However, once you have these $134 of points, you’ve got nothing to actually show for them until you redeem them. Only once you redeem them, have you cancelled out the annual fee. Essentially this is equivalent to spending $1479 and getting zero points; it’s a wash. So this is why in the below calculations that I subtract the annual fee from the total points earned, because I think points should only be counted on spending amounts over $1479 for the most accurate value determination
And, Another Note: For simplicity purposes: the Bonus Points are not part of the Initially listed monthly spending. They can be added on top of it, or just spent all at the end of the year, or whenever you have them accumulated.
PC Insiders Calcs!!!
100% PC Goods
Monthly Break Even Amount (100% PC Goods)
-Annual Fee: 134.47
-134.47 / 10% = 1344.70
-Therefore, spend 1344.70 to obtain 134.47 in points. (need to spend those points to technically reclaim lost value of fee (ie: to break even)
-Total value of groceries 1479.17 (1344.70 + 134.47 points)
-Total Cost of groceries 1479.17 (1344.70 + 134.47 fee)
–Real Cash Back is net 0% because grocery value = grocery cost.
-Monthly Spend per year to break even at 12 mos: 123.26
–Payback Time: 1 year
Using Bonus Redemption (200k = $300; points value = 50% more)
-134.47 in points / 1.5 = $89.64
-Therefore: If you accumulate $89.64 in points, this redeemable for
134.47, which covers the annual fee.
-89.64 in points / 10% = 896.40 dollars initially spent to get those
points.
-Total Groc. Value: 896.40 + 89.64 (aka 134.47 bonus points) =
1030.87
-Total Cost of Groceries: 896.40 + 134.47 (Fee) = 1030.87
-Groceries Out of Pocket / Groceries Total Value = Discount Rate
-1030.87 / 1030.87 = 100% (equals no discount on cost)
-RCB% = Points Redeemed / Groceries Total Value
-Technically this is Zero value after Annual Fee accounted for
-Break Even Time: 1030.87 / 12 mos = $86 / mo.
200 monthly budget: (100% PC Goods)
-Annual Fee: 134.47
-Total groceries per year: 2400.
-10% points on 2400 = 240 – 134.47 annual fee = 105.53
-Total Value of groceries bought and to be redeemed with points: 2400 + 105.53 = 2505.53
-Total Out of Pocket on groceries: 2400
-RCB: Points Redeemed / Groceries Total Value = 105.65 / 2505.53 = 4.2%
-Discount = 2400/ 2505.53 = 95.8% paid of full value
-Payback Time: 1479.17 (break even amount) / $200per month = 7.4 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 2400 = 240…. 240 x 1.5% = 360… 360 – 134.47 annual fee =
225.53
-Total Value Groc. + Redeemed = 2400 + 225.53 = 2625.53
-Total Out of Pocket: 2400
-Discount: 2400 / 2625.53 = 91.4% paid of full value
-RCB: Points Redeemed / Groceries Total Value = 225.53 / 2625.53 = 8.6%.
400 monthly budget: (100% PC Goods)
-Annual Fee: 134.47
-Total groceries per year: 4800
-10% points on 4800 = 480 – annual fee (134.47) = 345.53
-Total Value of groceries boughten and to be redeemed with points: 4800 + 345.53 = 5145.53
-Real Cash Back: 345.53 / 5145.53 = 6.7%
-Discount: 4800/5145.53 = 93.3% paid of full price
Payback time: 3.7 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 4800 = 480…. 480 x 1.5% = 720… 720 – 134.47 annual fee =
585.53
-Total Value Groc. + Redeemed = 4800 + 585.53 = 5385.53
-Total Out of Pocket: 4800
-Discount: 4800 / 5385.53 = 89.1% paid of full price
-RCB: Points Redeemed / Groceries Total Value = 585.53 / 5385.53 =
10.9%
600 monthly budget: (100% PC goods)
-Annual Fee: 134.47
-Total groceries per year: 7200
-10% points on 7200 = 720 – annual fee (134.47) = 585.53
-Total Value of groceries boughten and to be redeemed with points: 7200 + 585.53 = 7785.53
-Real Cash Back: Points Redeemed / Groceries Total Value = 585.53 / 7785.53 = 7.5%
-Discount: 7200 / 7785.53 = 92.5%
Payback time: 2.5 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 7200 = 720…. 720 x 1.5% = 1080… 1080 – 134.47 annual
fee = 945.53
-Total Value Groc. + Redeemed = 7200 + 945.43 = 8145.53
-Total Out of Pocket: 7200
-Discount: 7200 / 8145.53 = 88.4%
-RCB: Points Redeemed / Groceries Total Value = 945.53 / 8145.53 =
11.6%
800 monthly budget: (100% PC goods)
-Annual Fee: 134.47
-Total groceries per year: 9600
-10% points on 9600 = 960 – annual fee (134.47) = 825.53
-Total Value of groceries boughten and to be redeemed with points: 9600 + 825.53 = 10425.53
-Real Cash Back: 825.53 / 10424.53 = 7.9%
-Discount: 9600 / 10425.53 = 92.1%
Payback time: 1.8 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 9600 = 960…. 960 x 1.5% = 1440… 1400 – 134.47 annual
fee = 1305.53
-Total Value Groc. + Redeemed = 9600 + 1305.53 = 10905.53.53
-Total Out of Pocket: 9600
–Discount: 9600 / 10905.53 = 88%
–RCB: 1305.53 / 10905.53 = 12%
1000 monthly budget: (100% PC goods)
-Annual Fee: 134.47
-Total groceries per year: 12000
-10% points on 12000 = 1200 – annual fee (134.47) = 1065.53
-Total Value of groceries boughten and to be redeemed with points: 12000 + 1065.53 = 13065.53
-Real Cash Back: 1065.53 / 13065.53 = 8.2%
-Discount: 12000 / 13065.53 = 91.8%
Payback time: 1.5 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 12000 = 1200…. 1200 x 1.5% = 1800… 1800 – 134.47
annual fee = 1665.53
-Total Value Groc. + Redeemed = 12000 + 1665.53 = 13665.53
-Total Out of Pocket: 9600
–Discount: 12000 / 13665.53 = 87.8%
–RCB: 1665.53 / 13665.53 = 12.2%
50/50 PC/Non-PC Goods
200 monthly budget: (50/50 PC/Non PC)
-Annual Fee: 134.47
-Total groceries per year: 2400.
1200 of PC
1200 of Non-PC
-10% points on 1200 PC = 120 – annual fee (134.47) = -14.47
-Total Value of groceries boughten and to be redeemed with points: 2400 (no points are technically redeemed)
-Total Out of Pocket on groceries: 2400 +14.47 (left over fee not recouped) = 2414.47
–RCB: -14.47 / 2400 = -0.6%
-Discount: 2414.47 / 2400 =100.6% inflated value
-So You paid 1.006% more than what the groceries were actually worth, because you didn’t earn enough points to cover the annual fee.
–Payback time: You’re never able to recoup the value.
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 1200 = 120…. 120 x 1.5% = 180… 180 – 134.47 annual fee =
45.53
-Total Value Groc. + Redeemed = 2400 + 45.53 = 2445.53
-Total Out of Pocket: 2400
–Discount: 2400 / 2445.53 = 98.1%
–RCB: 45.53 / 2445.53 = 1.9%
400 monthly budget: (50/50 PC/Non/PC)
-Annual Fee: 134.47
-Total groceries per year: 4800
2400 of PC
2400 of Non-PC
-10% points on 2400 PC = 240 – annual fee (134.47) = 105.53
-Total Value of groceries boughten and to be redeemed with points: 4800 + 105.53 = 4905.53
-Total Out of Pocket on groceries: 4800
–RCB: 105.53 / 4905.53 = 2.2%
–Discount: 4800 / 4905.53 = 97.8%
Payback time: 7.4 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 2400 = 240…. 240 x 1.5% = 360… 360 – 134.47 annual fee =
225.53
-Total Value Groc. + Redeemed = 4800 + 225.53 = 5025.53
-Total Out of Pocket: 4800
–Discount: 4800 / 5025.53 = 95.5%
–RCB: 225.53 / 5025.53 = 4.5%
600 monthly budget: (50/50 PC Non/PC)
-Annual Fee: 134.47
-Total groceries per year: 7200
3600 PC
3600 Non PC
-10% points on 3600 = 360 – annual fee (134.47) = 225.53
-Total Value of groceries boughten and to be redeemed with points: 7200 + 225.53 = 7425.53
-Total Out of Pocket on groceries: 7200
–RCB: 225.53 / 7425.53 = 3%
–Discount = 7200 / 7425.53 = 97%
Payback time: 4.9 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 3600 = 360…. 360 x 1.5% = 540… 540 – 134.47 annual fee =
405.53
-Total Value Groc. + Redeemed = 7200 + 405.53 = 7605.53
-Total Out of Pocket: 7200
–Discount: 7200 / 7605.53 = 94.7%
-RCB: 405.53 / 7605.53 = 5.3%
800 monthly budget: (50/50 PC Non/PC)
-Annual Fee: 134.47
-Total groceries per year: 9600
4800 PC
4800 Non PC
-10% points on 4800 = 480 – annual fee (134.47) = 345.53
-Total Value of groceries boughten and to be redeemed with points: 9600 + 345.53 = 9945.53
-Total Out of Pocket on groceries: 9600
–RCB: 345.53 / 9945.53 = 3.5%
–Discount = 9600 / 9945.53 = 96.5%
Payback time: 3.7 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 4800 = 480…. 480 x 1.5% = 720… 720 – 134.47 annual fee =
585.53. –
-Total Value Groc. + Redeemed = 9600 + 585.53 = 10185.53
-Total Out of Pocket: 9600
–Discount: 9600 / 10185.53 = 94.3%
–RCB: 585.53 / 10185.53 = 5.7%
1000 monthly budget: (50/50 PC Non/PC)
-Annual Fee: 134.47
-Total groceries per year: 12000
6000 PC
6000 Non PC
-10% points on 6000 = 600 – annual fee (134.47) = 465.53
-Total Value of groceries boughten and to be redeemed with points: 12000 + 465.53 = 12465.53
-Total Out of Pocket on groceries: 12000
–RCB: 465.53 / 12465.53 = 3.7%
–Discount = 12000 / 12465.53 = 96.3%
Payback time: 3 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 6000 = 600…. 600 x 1.5% = 900… 900 – 134.47 annual fee =
765.53
-Total Value Groc. + Redeemed = 12000 + 765.53 = 12765.53
-Total Out of Pocket: 12000
–Discount: 12000 / 12765.53 = 94%
–RCB: 765.53 / 12765.53 = 6%
25/75 PC/Non-PC Goods
200 monthly budget: (25/75 PC/Non/PC)
-Annual Fee: 134.47
-Total groceries per year: 2400
600 PC
1800 Non PC
-10% points on 600 = 60 – annual fee (134.47) = -74.47
-Total Value of groceries boughten and to be redeemed with points: 2400
-Total Out of Pocket on groceries: 2400 + 74.47 = 2474.47
–Discount = 2474.47 / 2400 = 103.1% paid for a 100% value
–RCB: -74.47 / 2400 = -3.1%
Payback time: never
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 600 = 60…. 60 x 1.5% = 90… 90 – 134.47 annual fee =
-44.47
-Total Value Groc. + Redeemed = 2400 + 0
-Total Out of Pocket: 2400 + 44.47 = 2444.47
–Discount: 2444.47 / 2400 = 101.9% paid for a 100% value.
–RCB: -44.47 / 2400 = -1.9%
400montly budget (25/75 PC / Non PC)
-Annual Fee: 134.47
-Total groceries per year: 4800
1200 PC
3600 Non PC
-10% points on 1200 = 120 – annual fee (134.47) = -14.47
-Total Value of groceries boughten and to be redeemed with points: 4800
-Total Out of Pocket on groceries: 4800 + 14.47 = 4814.47
–RCB: -14.47 / 4800 = -0.3%
–Discount = 4814.47 / 4800 = 100.3% inflated value
Payback time: never
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 1200 = 120…. 120 x 1.5% = 180… 180 – 134.47 annual fee =
45.53
-Total Value Groc. + Redeemed = 4800 + 45.53 = 4845.53
-Total Out of Pocket: 4800
–Discount: 4800 / 4845.53 = 99.1%
-RCB: 45.53 / 4845.53 = 0.9%
600 monthly budget: (25/75 PC / Non PC
-Annual Fee: 134.47
-Total groceries per year: 7200
1800 PC
5400 Non PC
-10% points on 1800 = 180 – annual fee (134.47) = 45.53
-Total Value of groceries boughten and to be redeemed with points: 7200 + 45.53 = 7245.53
-Total Out of Pocket on groceries: 4800
–RCB: 45.53 / 7245.53 = +0.6%
–Discount = 7200 / 7245.53 = 99.4%
Payback time: 9.9 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 1800 = 180… 180 x 1.5% = 270… 270 – annual fee (134.47)
= 135.53
-Total Value of groc + redeemed = 7200 + 135.53 = 7335.53
-Total Out of Pocket on groceries: 7200
-RCB: 135.53 / 7335.53 = 1.8%
–Discount = 7200 / 7335.53 = 98.2%
800 monthly budget: (25/75 PC / Non PC
-Annual Fee: 134.47
-Total groceries per year: 9600
2400PC
7200 Non PC
-10% points on 2400 = 240 – annual fee (134.47) = 105.53
-Total Value of groceries boughten and to be redeemed with points: 9600 + 105.53 = 9705.53
-Total Out of Pocket on groceries: 9600
–RCB: 105.53 / 9705.53 = 1.1%
–Discount = 9600 / 9705.53 = 98.9%
Payback time: 7.4 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 2400 = 240…. 240 x 1.5% = 360… 360 – 134.47 annual fee =
225.53
-Total Value Groc. + Redeemed = 9600 + 225.53 = 9825.53
-Total Out of Pocket: 9600
-Discount: 9600 / 9825.53 = 97.7%
-RCB: 225.53 / 9825.53 = 2.3%
1000 monthly budget: (25/75 PC / Non PC
-Annual Fee: 134.47
-Total groceries per year: 12000
3000PC
9000 Non PC
-10% points on 3000 = 300 – annual fee (134.47) = 165.53
-Total Value of groceries boughten and to be redeemed with points: 12000 + 165.53 = 12165.53
-Total Out of Pocket on groceries: 12000
–RCB: 165.53 / 12165.53 = 1.4%
-Discount = 12000 / 12165.53 = 98.6
Payback time: 5.9 months
Using Bonus Redemption (200k = $300; points value = 50% more)
-10% points on 3000 = 300…. 300 x 1.5% = 450… 450 – 134.47 annual fee =
315.53
-Total Value Groc. + Redeemed = 12000 + 315.53 = 12315.53
-Total Out of Pocket: 12000
-Discount: 12000 /12315.53 = 97.4%
–RCB: 315.53 / 12315.53 = 2.6%
See, I told you it was LOTR long!
