PaySmarter.ca

Methodology · Last reviewed 2026-06-01

How estimated net value is calculated

Every PaySmarter card review shows a single dollar figure: estimated first-year net value. Here's the formula behind it.

The short answer

Estimated first-year net value = signup bonus value (CAD) + earned rewards on a $30,000 typical Canadian spend profile − annual fee (waived to $0 if first-year-free). Bonus is valued at realistic Canadian redemption rates, not issuer-marketed rates.

The formula

Net value formula

Estimated first-year net value = Signup bonus (CAD) + Earned rewards (CAD) − Annual fee (CAD, waived if First Year Free).

Spend assumptions

Earned rewards are computed against a typical Canadian household spend profile of ~$30,000/year split across groceries, dining, transit, gas, recurring bills and 'other'. We weight each card's category multipliers against that mix.

How we value points

  • Aeroplan points: 1.4–1.7 cents per point on realistic Canadian short-haul redemptions.
  • Amex Membership Rewards: 1.5–2.0 cents per point when transferred to Aeroplan points or used through the travel portal.
  • Cashback: face value (1 cent per cent).
  • Hotel points (Marriott Marriott Bonvoy points, etc.): 0.7–0.9 cents per point on standard award nights.

We do not use issuer-marketed valuations

Issuers often quote point values 30–50% higher than what most Canadians can realistically achieve. We calibrate to redemptions a typical user will actually make.

Rent and recurring-bill adjustments

When a card's best play involves routing rent through Chexy, Neobanc or Casa, we add a separate 'estimated rent rewards' line that accounts for the platform fee. The headline net value figure assumes a baseline spend profile only — rent rewards are additive.

FAQ

Common questions

Why is your estimated value lower than the issuer's quoted bonus?+

Because issuers quote the gross bonus at their own valuation rate. We subtract the annual fee, value points at realistic Canadian redemption rates, and only count rewards a typical user will actually earn.

Do I need to spend $30,000 to get the estimated value?+

No — the spend profile is a calibration baseline. Most cards still beat their fee at $15,000–$20,000 of annual spend, especially when rent is routed through a compatible platform.

Related guides