The Price of Admission: A Head-to-Head Membership Comparison

The first hurdle to clear at any warehouse club is the membership fee. This is your ticket to entry, and the costs and benefits differ between the two giants. Let’s break down the options to see which offers a better return on your investment.

Costco’s Membership Tiers

Costco offers two main levels of personal membership. It’s important to note that Costco stores exclusively accept Visa credit cards, in addition to cash, debit cards, and Costco Shop Cards.

The first is the Gold Star Membership, which currently costs $60 per year. This is the standard, entry-level option that grants you access to all Costco warehouses worldwide and online at Costco.com. It comes with two cards, one for you and one for another person in your household.

The second, more premium option is the Executive Membership, which costs $120 per year. It includes all the benefits of the Gold Star level, plus an annual 2% reward on most of your qualifying Costco purchases (up to a maximum of $1,000 back per year). You also get additional discounts on services like travel and insurance.

The key question for the Executive Membership is: will you spend enough to make it worthwhile? This involves a bit of simple math to find your break-even point. To cover the extra $60 it costs to upgrade from Gold Star, you need to earn at least $60 back in rewards. Since the reward is 2%, you can calculate your target spending like this: $60 divided by 0.02 equals $3,000. This means you need to spend $3,000 per year, or an average of $250 per month at Costco, just to break even on the upgrade. If you spend more than that, the Executive membership starts paying you back. If you spend less, the Gold Star membership is the more frugal choice.

Sam’s Club’s Membership Tiers

Sam’s Club, which is owned by Walmart, also has a two-tiered system and accepts a wider range of payment options, including Mastercard, Visa, American Express, and Discover.

Their basic level is the Club Membership, which currently costs $50 per year. This is a slightly more affordable entry point than Costco’s base tier. It gets you access to all Sam’s Club locations and their website, plus a complimentary household card.

The premium level is the Plus Membership, priced at $110 per year. Like Costco’s Executive tier, this membership offers 2% back in “Sam’s Cash” on qualifying in-club purchases (up to $500 back per year). It also comes with valuable perks like free shipping on most online orders, early shopping hours, and extra savings at their pharmacy and optical centers.

Let’s do the same break-even calculation for the Sam’s Club Plus membership. The upgrade from Club to Plus costs an extra $60 ($110 minus $50). To earn that $60 back with a 2% reward, you would need to spend $3,000 per year ($60 divided by 0.02), which is also an average of $250 per month. However, the added value of free shipping could make the Plus membership worthwhile even if your in-store spending is slightly lower, especially if you plan to order items online frequently.

Who Wins on Membership Cost?

For the budget-conscious shopper just wanting to get in the door, Sam’s Club has the clear edge with its cheaper $50 Club membership. However, for bigger spenders who can easily clear the $250-per-month threshold, the value proposition of the premium tiers at both stores is very similar. The final decision depends less on the sticker price and more on your expected annual spending and which store’s other benefits appeal to you most. You can always check for current promotions for new members on the official Costco website or the Sam’s Club website.