Is a Costco Executive Membership Worth Paying For?

A Costco Gold Star membership (the standard option) costs $60 annually, while a Costco Executive membership comes in at double the price, or $120.

Since you're probably paying for a warehouse club membership in order to try to keep more money in your checking account, it may seem unnecessary to spend an extra $60 just to get a higher membership tier.

But there are some perks that could make a Costco Executive membership worth it -- in some cases. Here's what to consider to decide whether an upgraded membership is worth the additional personal finance hit.

Will your cash back cover your added membership fees?

When deciding if a Costco Executive membership is worth paying for, you should consider whether you might earn enough cash back to cover the membership fee.

See, the entry level Gold Star membership costs $60, but you don't get any cash back from Costco with this tier (you can, however, earn rewards on your credit cards just like you would with any spending you do).

Costco's Executive membership, on the other hand, costs $120 a year, but you can earn a 2% annual reward on qualifying purchases up to a maximum annual reward of $1,000. If you buy $250 worth of stuff at Costco every month -- which is pretty easy to do -- the $3,000 that you spend there over a year would earn you $60 cash back and would cover the Executive membership fee.

If you spend more than that, you could earn more cash back than you paid for the upgraded membership and upgrading would be an easy call.

Take a look at how much you're spending with your current warehouse club membership and what your budget looks like for the upcoming year to see if you're likely to get enough of a bonus reward to offset the added costs of an upgraded membership.

Will you use the other Executive membership perks?

Depending on just how much you spend at Costco, the Executive membership may or may not pay for itself. But there are other perks beyond just the 2% annual reward that Costco provides. Executive members also get bonus discounts on other services Costco provides.

For example, all Costco members can get discounted checks, but Executive members save an extra 20% when they are ordering them. So, if you'll be making use of this feature to order checks for your personal bank account (or maybe your business bank account), you can factor that in when deciding if paying the extra $60 a year for the upgraded membership fee is worth it.

Ultimately, many people -- especially occasional Costco shoppers who just use the warehouse club and not other added services -- will find the Gold Star membership works just fine. But if you're going to Costco often for groceries and gas, purchasing big-ticket items like appliances or booking travel through Costco, or making use of the many other partner services Costco offers, then the upgraded membership will make good sense for you.

Look back over your past spending and the services that you typically use in order to decide which membership tier makes sense for you. If you want to change the tier of your membership -- including downgrading if the Executive level no longer makes sense -- you can stop by the membership desk at your local club or call the membership department at 1-800-774-2678.

Be sure to take the time to do the math, so you can get the right membership level for you in 2024.