PaySmarter.ca

Methodology · Last reviewed 2026-08-01

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.

Related

FAQ

Common questions

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.

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.

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