Is the Costco Executive Membership Worth It in Canada? (2026 Math Breakdown)

I began my Costco journey being not really interested in shopping at Costco, then wondered whether a Costco membership is worth it, then I started going there every two months or so. Now I go every month and do a big shop. The big shop went from spending around $300 a month to $600 a month. I am shocked each time when the friendly Costco cashier tells me the total. I think we still are at around $1000 a month in grocery spending for a family of four.

If you shop at Costco regularly, you’ve probably been asked at least once:

“Would you like to upgrade to the Executive Membership today?”

They seem very pushy about it so I asked my friend who works at Costco if they get a kick back or commission or if they have a quota to fill for the day. I mean, why are they so personally invested in getting customers to sign up for the Executive Membership?

He told me they don’t get a kick back. But increased revenue means more money for the Costco employees in the long run.

Costco’s membership fees equate to about 73% of Costco’s profits.

For an extra $60 a year (on top of your regular membership), Costco says you’ll earn 2% back on most purchases — plus access to exclusive deals and extra services.

But is it actually worth it?

Let’s look at the numbers, real-world examples, and the fine print to see if the Costco Executive Membership is worth it for Canadians in 2025.

Costco Membership Options in Canada

Costco offers two main levels of personal memberships: Gold Star and Executive.

Here’s a quick comparison:

Membership Type	Annual Fee	Rewards	Best For
Gold Star	$60	None	Occasional shoppers
Executive	$120	2% back (up to $1,000/year)	Regular or family shoppers

Both memberships give you access to all Costco warehouses and Costco.ca, but Executive members earn rewards and get extra partner perks.

How the Executive Membership Works

• Cost: $120 per year (vs. $60 for Gold Star)
• Rewards: 2% back on eligible Costco purchases
• Reward cap: $1,000 per year (requires $50,000 in spending to get the $1000 max)
• Reward issued: Annually, around your renewal date
• Eligible purchases: In-store and online Costco.ca items sold directly by Costco

If you do the math, this means the upgrade is only worth it if your 2% rebate is larger than the extra $60 you’re paying for it.

To break even on the Executive upgrade, you need to earn $60 in 2% rewards: 60÷0.02=$3,000

So, if you spend more than $3,000 per year at Costco (around $250/month), you’ll come out ahead.

Example 1: Typical Family Shopper

Category	Monthly Spend	Annual Spend	2% Reward
Groceries	$400	$4,800	$96
Household Supplies	$100	$1,200	$24
Total	$500	$6,000	$120

✅ Result: You earn $120 in rewards, doubling your membership fee (so you earn $60 after the Executive upgrade)

If you regularly stock up on groceries, household supplies, or school snacks, the Executive upgrade easily pays for itself- but not by much.

Example 2: Occasional Costco Shopper

Category	Monthly Spend	Annual Spend	2% Reward
Groceries	$150	$1,800	$36
Household Items	$50	$600	$12
Total	$200	$2,400	$48

❌ Result: You earn $48 in rewards — not enough to cover the $60 upgrade. The Gold Star membership makes more sense here.

Example 3: Single Shopper or Couple

If you’re single or a couple without kids, your Costco trips might be smaller.

Let’s say you spend $250 per month.

With the 2% Cash Back you will get $60 back.

You’re right at the break-even point (where the Executive Membership is free). You’ll likely come out even or slightly ahead, especially if you buy big items (electronics, furniture, appliances).

What’s Not Included in the 2% Reward

Not every purchase counts toward your 2% cashback.

Here’s what’s excluded from the 2% Cash Back in Canada:

• Costco gas stations
• Alcohol (depending on province)
• Food court items (hot dogs and pizza sadly don’t count)
• Optical exams, hearing tests, or some pharmacy items
• Costco.ca third-party marketplace sellers

If your primary reason for having a Costco membership is for gas or cheap food court meals, the Executive upgrade won’t benefit you much.

The Hidden Value: Extra Perks for Executive Member

Beyond cashback, Executive Members get exclusive deals through Costco’s partners. In Canada, those include:

• Costco Insurance: Discounts on home and auto insurance through partner companies
• Mortgage and Refinancing: Lower rates or cashback options via Dominion Lending Centres
• Costco Travel Canada: Member-only pricing on vacation packages, cruises, and car rentals
• Extended Warranty: An additional one-year warranty on most electronics and appliances

That last one alone can be worth $100–$200 on major purchases like a TV, laptop, or fridge.

Real-Life Example: My Family’s Spending

Here’s an example of how my family uses Costco over the course of a year:

Category	Annual Spend	2% Reward
Groceries & Household	$5,400	$108
Seasonal Items (school, gifts)	$600	$12
Total	$6,000	$120

That puts us exactly at the $120 rebate mark — so the Executive Membership pays for itself and covers the entire cost of the upgrade.

Add in one or two large purchases per year (like a small appliance or new tires), and we would be comfortably ahead.

Costco Travel Savings

Costco Travel often gets overlooked, but for Executive Members, it can be a hidden gem.

You can find discounted vacation packages, cruises, and car rentals — and sometimes, the Executive Member price is lower or includes bonus perks like resort credits or Costco gift cards.

For example:

• Booking a family trip to Hawaii through Costco Travel might save $200–$300 compared to booking direct.
• Renting a car with the Executive discount can save $5–10/day.

Even if you only use it once every few years, the travel savings alone could offset your membership cost.

You Can Downgrade Anytime

Here’s the best part — if you don’t earn back the cost of your upgrade, Costco will refund the difference.

✅ Example: You earned $45 in rewards → Costco will refund $15 when you downgrade.

This makes it risk-free to try for a year. You have nothing to lose (well except for the hassle of having to line up at the customer service area- which can be a big barrier for someone like me) — and you might even gain free warranty coverage and extra perks.

Pros and Cons Executive Membership Summary

Pros of Executive Membership	Cons of Executive Membership
2% cashback on most purchases	Gas and food court not included
Refund guarantee if you don’t earn back	Upfront cost is higher
Extra year of warranty on electronics	Travel and insurance perks vary
Access to Costco Travel and services	Best for regular shoppers only

When the Executive Membership Is Worth It

✔️ You spend $3,000+ per year at Costco
✔️ You buy larger household or electronic items
✔️ You use Costco Travel or services
✔️ You want warranty protection on big purchases

When It’s Not Worth It

❌ You shop mostly for gas or food court snacks
❌ You spend less than $250/month
❌ You rarely shop for high-value items
❌ You share a membership and do little of the shopping yourself

How to Maximize Your Executive Membership

1. Use a Cash Back Credit Card
   The CIBC Costco Mastercard offers:
   • 3% back on Costco gas, 2% on Costco.ca, and 1% everywhere else
   That stacks with your 2% Executive reward for even more savings- though personally I don’t think this is really worth it
2. Track Your Yearly Spending
   Check your Costco receipts or online account — if you’re over $3,000 a year, the Executive upgrade is already paying off.
3. Take Advantage of the Warranty
   Costco’s extended warranty doubles your coverage for many electronics — no registration or extra cost required.
4. Use Costco Travel Once a Year
   Even one vacation booking can cover your membership upgrade fee.

Final Verdict: Worth It for Most Canadians

If your household spends more than $500/month at Costco, the Executive Membership pays for itself— and then some.

Between the 2% reward, the extended warranty, and partner perks, most families will easily break even or come out ahead.

If you’re a light shopper who mainly buys gas and snacks, stick with the Gold Star membership. But for everyone else, the Executive tier is a decent upgrade.

Bottom line:

The Costco Executive Membership is worth it in Canada for most shoppers who spend more than $500 a month at Costco — and if it’s not, Costco will give you your money back.

What we’re doing:

Although I’m big on deals, for our family, saving an extra $60 a year isn’t really worth it for us to upgrade to the Executive Membership. If it was an extra $600 then yes, I would do it, but for $60 it doesn’t seem worth the time to upgrade, and then I would feel the pressure to spend at least $3000 a year at Costco to make the membership worth it.

Also I don’t like to have “lifestyle inflation” even if it’s $60.

I will still think about it though because signing up for the Executive Membership would mean a cessation of the cashiers pressuring me to get the Executive Membership and that would increase my quality of life while shopping at Costco (it is PTSD inducing enough already for me).

Here are some Costco hacks to save money next time you are at Costco.

Are you Costco Executive Members? Do you think it is worth the extra $60 a year?