It’s Easier Than You Think: You Can Get Your Costco Membership for Free

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Don’t want to pay for Costco access? Read on to see how you can technically get Costco to cover your membership cost. [[{“value”:”

Millions of people have joined Costco for the everyday savings on groceries, household essentials, and other purposes. But there’s a financial obstacle you may feel compelled to overcome on the road of saving money at Costco — recouping your membership fee.

Beginning Sept. 1, a basic membership at Costco will cost $65 per year, while an Executive membership will cost $130 per year. The Executive membership costs double because it gives you 2% cash back on your Costco purchases.

You may not be thrilled about the idea of having to spend money to access Costco. After all, most stores let you just walk in and shop.

But the good news is that you may not actually have to pay for a membership. If you play your cards right, you can get Costco to reimburse your fee completely.

Take advantage of Executive member cash back

Although there are some exceptions, the majority of the Costco purchases you make are eligible for cash back with an Executive membership. If you spend enough money at Costco during the year, you can earn enough cash back to make up for its $130 annual cost.

It takes $6,500 in annual Costco spending to recoup your $130 Executive membership fee. Any spending beyond that simply puts extra cash back in your pocket.

Now at first, that might seem like a large amount of spending. But if you shop at Costco regularly, it’s actually not all that much — especially given the general higher cost of groceries and household products today.

Imagine you shop at Costco 50 weeks a year and spend $130 on average per visit. That alone gets you to $6,500. And that doesn’t include larger Costco purchases you might make.

Throughout the year, you might replace some apparel at Costco, or upgrade a TV or appliance. You might buy a piece of furniture or book a vacation.

All of these purchases are eligible to earn cash back with an Executive membership. You may find it’s easier than expected to make your membership fee back — even if you’re paying for the more expensive one upfront.

It’s worth joining Costco even if you don’t get your entire membership fee back

You might feel good about getting to recoup your entire Costco membership fee. But even if you don’t, that doesn’t mean it’s not worth paying.

Let’s say you sign up for an Executive membership at Costco for $130 and only recoup $110 of that with cash back accrued during the year. Don’t assume you’re out $20. Your $130 fee may have saved you $800 on the products you bought over 12 months. So even if you subtract $20 from $800, you’re up $780.

Remember, Costco’s membership fees are what allow it to offer its fantastic prices. Put another way, if Costco were to let customers in without a membership, the bulk cheddar cheese you buy every other week might cost you $14 instead of $11. The muffins your family loves might cost you $15 for a 12-pack instead of $10.

So even if you decide to get a basic membership for $65 that earns you zero cash back, you might still come out ahead financially.

Top credit cards to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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