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Is the Costco Executive Membership in Canada Worth the Cost? A Breakdown

At the checkout line in any Canadian Costco, you've likely been asked the question: "Are you interested in upgrading to our Executive Membership today?" The promise of a 2% annual reward on your purchases is tempting, but is it actually worth the higher upfront cost? This guide will break down the numbers, explain the benefits, and help you determine if the Costco Executive Membership is a smart financial move for you.

The Two Tiers of Costco Membership in Canada

First, let's look at the basic costs (prices as of early 2025, subject to change):

The Break-Even Calculation

The decision to upgrade hinges on one simple calculation: will your 2% reward be greater than the extra $60 you paid for the membership? The math is straightforward.

Who is the Executive Membership For?

Based on the break-even calculation, the Executive Membership is a good value for specific types of shoppers.

You SHOULD Upgrade If:

• You are a family that does your primary grocery shopping at Costco. A family of four can easily spend more than $250 a month on groceries, paper products, and household staples. For these members, the upgrade is essentially free money.
• You are a small business owner. If you use Costco to buy supplies, snacks, or materials for your business, you will likely surpass the $3,000 spending threshold very quickly.
• You plan on making a single large purchase. Are you buying a new TV, a set of tires, a major appliance, or a large furniture set? If a single purchase is over $3,000, the Executive Membership pays for itself on that one transaction alone. For example, a $4,000 purchase would earn you an $80 reward, more than covering the $60 upgrade cost.

You should probably STICK with the Gold Star Membership If:

• You are a single person or a couple who only shops occasionally. If you only go to Costco once every few months to stock up on a few specific items, you are unlikely to spend the $250 per month needed to break even.
• Your primary purchases are items that don't qualify for the 2% reward. It's important to know what's excluded.

What's NOT Included in the 2% Reward?

The 2% reward applies to most, but not all, purchases. Key exclusions in Canada include:

• Gasoline
• Tobacco products
• Costco Shop Cards
• Postage stamps
• Food court purchases
• Membership fees

If a significant portion of your annual spending is on gasoline, remember that this does not count toward your 2% reward calculation.

Costco's Satisfaction Guarantee: The No-Risk Proposition

Here is the most important part of the equation: Costco guarantees your satisfaction with the Executive Membership.

If you upgrade to the Executive Membership and, at the end of the year, your 2% reward is less than the $60 upgrade fee, you can go to the customer service desk and they will refund you the difference. For example, if you only spend $2,000 and your reward is $40, Costco will give you back the $20 difference. This makes trying the Executive Membership for a year completely risk-free.

Conclusion: A Risk-Free Bet for Most Regular Shoppers

Is the Costco Executive Membership worth it in Canada? For anyone who spends more than $250 per month at the warehouse, the answer is a clear yes . The 2% reward turns into pure profit after you pass the $3,000 annual spending mark. For those who are unsure, Costco's satisfaction guarantee makes it a no-risk proposition. You can upgrade for a year, see what your reward check looks like, and if it doesn't cover the upgrade fee, Costco will refund you the difference. Given this guarantee, any regular Costco shopper should strongly consider the upgrade.