The Chase Sapphire Reserve® is unquestionably one of the top travel rewards cards, but determining if it’s financially prudent to acquire or retain this card can be challenging. Ultimately, the value of the Chase Sapphire Reserve’s benefits varies from one cardholder to another.
In this piece, I’ll examine various situations that could assist you in determining if the Chase Sapphire Reserve is the right option for you. Initially, I’ll contrast the Chase Sapphire Reserve with the Chase Sapphire Preferred® Card, which is a comparable card featuring slightly less lucrative bonus categories and a notably lower annual fee. Next, I’ll compare the Chase Sapphire Reserve to the…Citi Double Cash® Card(see rates and fees), a card that offers up to 2% cash back on all purchases (1% when you make a purchase and an additional 1% when you pay) and does not have an annual fee.
Let’s get started.
Premises for this examination
This analysis only examines the return you gain through spending. Therefore, it does not take into account the value provided by additional perks, like lounge access and travel protections. If you assume you’ll benefit from these perks, your break-even point will be even lower than the one calculated in this guide.
Furthermore, I won’t factor in the standard $550 yearly fee for the Chase Sapphire Reserve. As you might be aware, this card provides an automatic $300 annual travel credit for qualifying purchases. Therefore, my evaluation will take into account the Chase Sapphire Reserve’s effective annual fee as being $250 out of pocket. Similarly, I’ll consider the Chase Sapphire Preferred’s effective annual fee as $45, given that it offers a $50 annual hotel credit for reservations made through Chase Travel℠.
I’ll assume that your card purchases break down as follows: 50% for dining at restaurants, 10% for airline tickets purchased through Chase Travel, 10% for hotel accommodations and car rentals purchased through Chase Travel, and 30% for other travel purchases. For Citi Double Cash calculations, I’ll assume you book through a method other than Chase Travel. Meanwhile, for the Chase Sapphire Reserve, I’ll assume the travel credit is applied to travel expenses not booked through Chase Travel.
In conclusion, I will exclude temporary benefits from this analysis.
Related: Is the annual fee for the Chase Sapphire Reserve worth it?
Sapphire Reserve compared to Sapphire Preferred
To contrast the Chase Sapphire Reserve with the Chase Sapphire Preferred, you can determine the break-even point for the two cards. I’ll utilize the following values for the effective annual fees:
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- Chase Sapphire Reserve: $250 (derived from $550 after applying the $300 travel credit)
- Chase Sapphire Preferred: $45 (after deducting the $50 Chase Travel hotel credit from the $95 fee)
This results in a difference of $205.
You should also take into account the bonus points. With the Chase Sapphire Reserve, you will accumulate 10 points for every dollar spent on Chase Travel for hotel stays and car rentals, 5 points for each dollar on Chase Travel airline tickets, 3 points per dollar on other travel expenditures (excluding those covered by the $300 travel credit), and 3 points per dollar on dining at restaurants.
In the meantime, the Chase Sapphire Preferred card offers 5 points for every dollar spent on Chase Travel purchases (excluding those covered by the $50 hotel credit), 3 points per dollar spent on dining at restaurants, and 2 points per dollar spent on other travel expenses.
The calculations presented below are sourced from TPG and not supplied by the issuer. In essence, the value of points accrued using each card, based on the spending distribution outlined earlier and subtracting each card’s effective annual fee, should be equivalent.
Related: Five actions to take after acquiring your Chase Sapphire Reserve.
If you utilize TPG’s valuations
The calculations in this section are based on the assumption that transferring your Chase Ultimate Rewards points to airline or hotel partners yields 2.05 cents per point. According to TPG’s valuation, which is also 2.05 cents per point, the break-even point for annual spending would be $13,312.50.
Here is an overview of how the points accrued and their corresponding value would stack up for the two cards over a year of spending based on our assumptions:
| Purchase type | Spending amount | Points earned | Points accumulated value |
|---|---|---|---|
| Dining at restaurants | $6,656.25 | 19,969 | $409 |
| Chase Travel | $2,662.50, divided equally between spending on hotels and car rentals, and flights for Sapphire Reserve. | Sapphire Reserve: 19,969
Sapphire Preferred: 13,063 |
Sapphire Reserve: $409
Sapphire Preferred: $268 |
| Other travel | $3,993.75 | Sapphire Reserve: 11,081
Sapphire Preferred: 7,988 |
Sapphire Reserve: $227
Sapphire Preferred: $164 |
| Total | $13,312 | Sapphire Reserve: 51,019
Sapphire Preferred: 41,020 |
Sapphire Reserve: $1,046
Sapphire Preferred: $841 |
At this rate of expenditure, accumulating an additional 9,999 Ultimate Rewards points with the Chase Sapphire Reserve will compensate for the extra $205 annual fee. For those verifying my calculations, please note that points are not earned on the amounts covered by the $300 travel credit from the Chase Sapphire Reserve and the $50 Chase Travel hotel credit from the Chase Sapphire Preferred.
Conclusion: With the given assumptions, if your annual spending on the card is at least $13,312.50, the Chase Sapphire Reserve card offers greater rewards. This translates to a monthly spending average of $1,109 or higher.
If you make a reservation via Chase Travel
You’ll notice a small variation in the break-even point when redeeming your points for travel through the Chase Travel portal. This is because Chase Sapphire Reserve cardholders can redeem travel through the portal at a rate of 1.5 cents per point. On the other hand, Chase Sapphire Preferred cardholders can only redeem at a rate of 1.25 cents per point.
Here’s an overview of how the points accumulated and their corresponding value would compare for the two cards over a year, based on our spending assumptions:
| Purchase type | Spending amount | Points earned | Total point value accumulated |
|---|---|---|---|
| Dining at restaurants | $5,452.53 | 16,358 | Sapphire Reserve: $245
Sapphire Preferred: $204 |
| Chase Travel | $2,181.01 (divided equally between hotels and car rentals, and flights for Sapphire Reserve) | Sapphire Reserve: 16,358
Sapphire Preferred: 10,655 |
Sapphire Reserve: $245
Sapphire Preferred: $133 |
| Other travel | $3,271.52 | Sapphire Reserve: 8,915
Sapphire Preferred: 6,543 |
Sapphire Reserve: $134
Sapphire Preferred: $82 |
| Total | $10,905.06 | Sapphire Reserve: 41,631
Sapphire Preferred: 33,556 |
Sapphire Reserve: $624
Sapphire Preferred: $419 |
Conclusion: According to these assumptions, if you spend at least $10,905.06 annually on eligible purchases and intend to redeem your points by booking travel through the Chase Travel portal, the Sapphire Reserve is the more beneficial option for you. This amounts to approximately $909 per month.
Related: Chase Sapphire Preferred vs. Sapphire Reserve: Should you opt for mid-tier or premium?
Chase Sapphire Reserve compared to Citi Double Cash.
Next, I’ll compare the distinctions between the Chase Sapphire Reserve and theCiti Double Cash® CardThe Citi Double Cash Card does not have an annual fee (refer to rates and fees) but offers up to 2% cash back on all purchases: 1% when you make a purchase and an additional 1% when you pay your bill.
If you rely on TPG’s valuations
By utilizing TPG’s valuation of Chase Ultimate Rewards points at 2.05 cents per point for the Reserve and calculating spending, one can determine the break-even annual expenditure to be $4,477.90.
Below is a comparison of the points accumulated and the corresponding value of those points for the two cards over a year, based on my assumptions about spending.
| Purchase type | Spending amount | Rewards earned | Rewards earned value |
|---|---|---|---|
| Dining at restaurants | $2,238.95 | Sapphire Reserve: 6,717 points
Citi Double Cash: $44.78 |
Sapphire Reserve: $137.70
Citi Double Cash: $44.78 |
| Chase Travel | Sapphire Reserve (50% on hotels and car rentals, and 50% on flights): $895.58
Citi Double Cash: Not Applicable |
Sapphire Reserve: 6,717 points
Citi Double Cash: Not Applicable |
Sapphire Reserve: $137.70
Citi Double Cash: Not Applicable |
| Other travel | Sapphire Reserve: $1,343.37
Citi Double Cash: $2,238.95 |
Sapphire Reserve: 3,130 points
Citi Double Cash: $44.78 |
Sapphire Reserve: $64.16
Citi Double Cash: $44.78 |
| Total | $4,477.90 | Sapphire Reserve: 16,564 points
Citi Double Cash: $89.56 |
Sapphire Reserve: $339.56
Citi Double Cash: $89.56 |
Based on these assumptions, if your annual spending with the card is at least $4,477.90, the Chase Sapphire Reserve offers more advantageous award earnings. This equates to an average eligible monthly expenditure of $373 or higher.
Related: How to maximize your earnings with the Chase Sapphire Reserve.
If you make a reservation via Chase Travel
Now, let’s consider that you intend to use Chase points for travel reservations made via Chase Travel, with each point valued at 1.5 cents. Based on our assumptions, the annual spending threshold to break even is $6,844.16.
Below is a comparison of how the points accumulated and their corresponding value for the two cards would look over a year of spending based on our assumptions:
| Purchase type | Spending amount | Rewards earned | Worth of rewards accumulated |
|---|---|---|---|
| Dining at restaurants | $3,422.08 | Sapphire Reserve: 10,266 points
Citi Double Cash: $68.44 |
Sapphire Reserve: $153.99
Citi Double Cash: $68.44 |
| Chase Travel | Sapphire Reserve (50% on hotels and car rentals, and 50% on flights): $1,368.83
Citi Double Cash: Not Applicable |
Sapphire Reserve: 10,266 points
Citi Double Cash: Not Applicable |
Sapphire Reserve: $153.99
Citi Double Cash: Not Applicable |
| Other travel | Sapphire Reserve: $2,053.25
Citi Double Cash: $3,422.08 |
Sapphire Reserve: 5,260 points
Citi Double Cash: $68.44 |
Sapphire Reserve: $78.90
Citi Double Cash: $68.44 |
| Total | $6,844.16 | Sapphire Reserve: 25,792 points
Citi Double Cash: $136.88 |
Sapphire Reserve: $386.88
Citi Double Cash: $136.88 |
Conclusion: Based on the stated assumptions, if your annual spending with your card is a minimum of $6,844.16, the Chase Sapphire Reserve offers superior value in terms of the rewards you accumulate.
Related: 6 less well-known travel and shopping benefits of the Chase Sapphire Reserve
Considering your situation
It’s possible that none of the mentioned scenarios exactly matches your circumstances. Additionally, certain benefits of the Chase Sapphire Reserve might offer value to you.
Therefore, if you’re interested in determining the break-even point for the Chase Sapphire Reserve, you’ll need to take into account the following factors:
- How much do you appreciate the additional benefits of the Sapphire Reserve card?
- What credit cards would you choose for travel, dining, and regular expenses if you weren’t using the Sapphire Reserve?
These factors can be utilized to determine your own break-even point. It’s probable that your break-even point is lower than many of the examples discussed in this article.
And naturally, if you are a prospective Sapphire Reserve cardholder, you might also want to factor in the value of the Sapphire Reserve’s existing sign-up bonus.
Related: What credit score is required for the Chase Sapphire Reserve card?
Bottom line
The Chase Sapphire Reserve can be a valuable choice for numerous individuals. Its rewards can be especially appealing, particularly with the 75,000-point sign-up bonus after spending $4,000 on purchases within the initial three months of account opening. However, it might not be the ideal option for everyone. Therefore, it’s important to calculate and determine if having or retaining this card is beneficial for you.
For additional information, refer to our comprehensive reviews of the Chase Sapphire Reserve, the Chase Sapphire Preferred, and the Citi Double Cash.
Sign up for the Chase Sapphire Reserve and earn 75,000 bonus points after spending $4,000 on purchases within the first three months from account opening.