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Is Costco’s $120 Executive membership Worth Your Money?

This tier requires you to pay an annual membership fee of $120, which includes a free household card among other benefits.
Cover Image Source: Costco | Getty Images | Photo by Scott Olson
Cover Image Source: Costco | Getty Images | Photo by Scott Olson

If you are a Costco member, there's a good chance that you already know about the Executive Membership. At first glance, the $120 Executive Membership seems like an enticing proposition for your Costco shopping experience. However, before you decide to upgrade to this option, take the time to review your spending habits. It's essential to ensure that the benefits offered by the Executive Membership align with your purchasing patterns and lifestyle.

Getty Images | Tim Boyle
Image Source: Getty Images | Photo by Tim Boyle

The membership requires you to pay an annual fee of $120, which includes a free household card. The card can be used at all Costco locations worldwide. Furthermore, you will be eligible for a 2% cashback on all of your Costco purchases, and all this for just an additional $60 per year. If you combine this with your Costco Anywhere Visa card, you can get 4% cashback every time you buy from their stores. Executive members have the potential to earn up to $1,000 each year on qualifying Costco,, and Costco Travel transactions. What's noteworthy is that the annual 2% reward comes with the added benefit of no-expiration.

If you are unsure about getting an executive membership, the best thing to do is to review your previous year's spending and see what your annual expenditure looks like. This method will only work if you are planning a similar lifestyle in 2024. If you spend less than $3000 at Costco each year, opting for the Executive Membership may lead to a higher overall expenditure. If you find yourself in this category, the best choice might be the no-fee Costco Anywhere Visa card.

Getty Images | Chris Hondros
Image Source: Getty Images | Photo by Chris Hondros

However, if you spend more than that, it would make sense to pay the annual fee of $120. This is because every dollar that you spend after $3000 will bring your annual fee further and further below the $60 mark, helping you save in the long run. You can always go to the official site to calculate your monthly spending at the store.  


The Executive Membership also offers additional savings on Costco services like bottled water and pet insurance. If you buy a home or auto insurance from Costco, you will be entitled to exclusive benefits such as roadside and lockout assistance. However, if you're still confused, you have the option to give the Executive membership a trial run.

Costco offers a guarantee to reimburse the price difference between a Gold Star membership and an Executive membership for your first year. However, it's important to note that the refund process is not automatic. To reclaim your money, you'll have to visit your nearby Costco outlet and initiate the reimbursement procedure at the membership desk.