Payroll Credit Card Calculator
Answers the only question that matters: does paying payroll with a credit card actually make or lose money for your business? Enter your numbers below.
Your numbers
The total you fund each month.
Points × point value. Flat 2% cash back = 2. Category bonus 3x on 2¢ points = 6.
Plastiq 2.99%. Melio 2.9% (contractors only). CardUp ~2.5%.
Welcome offer cash value, spread across year one.
Your result
What this means
How to use this calculator
Three numbers determine whether paying payroll with a credit card is profitable for your business:
- Monthly payroll — the total dollar amount you run each month.
- Your card's effective rewards rate — not the advertised rate, but what you actually earn once you factor in point value. A 3x points card with 2¢ per point equals a 6% effective rate. A 2% cash-back card equals 2%. If you're not sure, default to a conservative point value — 1.5¢ per point is safe for most transferable programs.
- Service fee percentage — what your card-to-ACH provider charges. Common rates: Plastiq 2.99%, Melio 2.9% (contractors only), CardUp ~2.5%.
Reading the result
- Net positive — you're earning more in rewards than you're paying in fees. The strategy pays off, assuming you pay your statement in full.
- Net negative — you're losing money on every cycle. Either find a higher-reward card or reconsider the strategy.
- Near break-even — you're using this for cash flow float, not rewards. Make sure the 30–55 day float is worth the small cost.
What the calculator does NOT account for
- Sign-up bonus after year 1. The calculator amortizes a welcome offer across 12 months. In year 2 onward, bonus value drops to zero unless you open a new card.
- Stacked fees. Some services charge monthly subscriptions, setup fees, or per-transaction flat fees on top of the percentage. Read your provider's full schedule.
- Interest on carried balances. If you don't pay in full, at 24% APR the interest will dwarf any rewards. This calculator assumes you pay in full every cycle.
- Issuer shutdown risk. Running large repeating charges carries real risk of account closure. The calculator shows expected value, not risk-adjusted value.
- Tax implications. Credit card rewards are generally non-taxable for purchases but taxable for bonuses earned without corresponding spend. Consult your CPA.
Who built this
This calculator was built by the PayrollByCreditCards editorial team as a free resource for small business owners evaluating the strategy. It's not a substitute for professional financial advice — see our Terms of Service — but it should save you 15 minutes of spreadsheet math.