The Executive 2% reward, explained

The reward is the whole reason to pay for Executive. Here's how it works, in plain English.

Based on Costco's U.S. terms, last checked October 12, 2026.

The short version

• Executive costs $130 a year, $65 more than Gold Star.
• You get 2% back on qualifying purchases, up to $1,250 a year.
• It pays for itself once you spend about $3,250 a year ($271 a month) on purchases that earn it.
• The reward comes once a year, around three months before your renewal date.

What earns the reward

Costco says the reward applies to qualifying purchases at its warehouses, on Costco.com and through Costco Travel. Some purchases are excluded, and the list can change, so check Costco's Executive reward terms for the current list before you count on a purchase.

Two rules catch people out:

• Only purchases after you upgrade count. Spending earlier in your membership year doesn't earn anything.
• Returned items lose their reward. If you return something, the reward it earned is taken back.

The $1,250 cap

The reward stops growing at $1,250 a year. At 2%, you reach that after $62,500 of qualifying spending. Above that, extra spending earns nothing more from the membership.

When you get it

Costco issues the reward once a year, about three months before your membership renews, with your renewal statement. See Costco's reward page for how to redeem it.

Is the reward guaranteed to cover the fee?

No. Costco's terms say the reward isn't guaranteed to equal or exceed the upgrade fee. If you spend less than about $271 a month on qualifying purchases, your reward will be smaller than the extra $65 you paid.

What happens if you downgrade or cancel

You can get the upgrade fee back by downgrading to Gold Star or Business, or by cancelling. But any reward already issued or earned is subtracted from that refund. In practice:

• If you've earned less than $65, you get back the difference.
• If you've earned $65 or more, you get nothing back, and the reward is forfeited.

Our downgrade calculator works out which choice leaves you better off.

Worked examples

Try your own number in the Executive calculator.

Sources

• Costco: Executive 2% reward
• Costco customer service: What is an Executive Membership?