Sign in Subscribe

Breaking Even at Costco: The Fastest and Slowest Ways to Justify Your Membership Fee

Breaking Even at Costco: The Fastest and Slowest Ways to Justify Your Membership Fee

For many shoppers, a Costco membership feels like an automatic money-saver. But is it? At $65 per year for a basic Gold Star membership and $130 for Executive membership, the real question isn’t whether Costco has good deals, it’s whether those deals save you more than what you spent to walk through the door. Some purchases make back your membership cost almost immediately, while others require a level of bulk consumption that borders on the absurd.

Let’s break down the fastest and slowest ways to make back your Costco membership fee, factoring in not just your purchases but also the cost of getting there.

Membership Costs + Gas

Costco offers two membership levels:

Gold Star ($65/year) - Grants you the privilege of entering the warehouse and contemplating a 25-pound bag of flour.

Executive Gold Star ($130/year) - Everything Gold Star offers, plus an annual 2% reward on most Costco purchases (up to $1,250). Also includes access to additional perks like life and health insurance plans.

Then there’s the cost of getting to Costco. Let’s assume a 20 km round-trip drive takes about an hour. At $1.50 per litre of gas and a fuel efficiency of 10 km per litre, you’re spending roughly $3 per visit just to make the pilgrimage. Obviously, this varies by location, vehicle, and your car's fuel efficiency.

The Fastest Ways to Justify a Costco Membership

1. Gasoline: ($7.50 savings per trip)

If you live near a Costco with a gas station, this is one of the easiest ways to make back your membership fee. Costco gas is consistently cheaper than competitors, often by $0.07 to $0.10 per litre in Canada. Fill up a 75-litre tank, and you’re saving $7.50 per visit. Fill up twice a month, and you’ll have recouped your Gold Star membership in under four months—faster if gas prices spike.

2. Gift Cards for Restaurants & Entertainment 

Costco sells discounted gift cards for restaurants, transportation, and entertainment, effectively turning money into slightly more money. Typical discounts include:

  • Uber & DoorDash: $100 in credit for $80
  • Air Canada, Porter & WestJet: $500 in credit for $450
  • Cineplex Movie Bundle: Two tickets, two drinks, and popcorn for $33.99 

If you frequently dine out or travel, this is one of the easiest ways to make back your membership fee with a couple of purchases.

3. Eyeglasses and Contact Lenses 

Costco Optical still offers some of the best deals, though online retailers have narrowed the gap. Name-brand contacts are often priced similarly to promotional offers from sites like Kits.ca. However, Kirkland-brand contact lenses typically save you an additional 10-15%.

For glasses, progressive lenses remain a standout deal at Costco. If you need multifocals and don’t want to pay boutique pricing, you’ll make back your membership fee in one transaction.

If you don't require progressive lenses, the savings are also not as immediately noticeable, thanks to the increase in low-cost eyeglass providers like Warby Parker and Bailey Nelson.

4. Frozen Foods

Frozen produce, meats, and ready-made meals at Costco often come in 10-30% cheaper than standard grocery stores. The catch? Ensuring you have enough freezer space back at home.

5. Eggs, Milk, Produce

Produce and dairy at Costco are typically 10-30% cheaper per unit, but perishability is the enemy. Four litres of milk or a tub of greens sounds like a great deal—until you’re rushing to finish it before it expires.

One standout? Cheese. Costco’s selection is excellent, and prices are often 20-40% cheaper than grocery stores. If your household consumes an alarming amount of brie, your membership is working for you.

The Slowest Ways to Justify a Costco Membership

1. Toilet Paper & Paper Towels (Break-Even Time: 1 Year+)

Yes, Costco’s bulk toilet paper is a great deal, but it doesn’t add up as quickly as you might think. Depending on your household’s consumption, you’re looking at roughly $15-$25 in annual savings. It’ll take several years of dedicated Costco bathroom tissue loyalty to break even on a membership.

2. Sodas, Sparkling Waters & Other Drinks

Costco’s drink selection is usually strong, but the savings on name-brand sodas are often limited to around 10%. For example, on a recent trip:

  • Costco: Coca-Cola (36-pack) $15.89 ($0.44/can)
  • Walmart: Coca-Cola (24-pack) $11.97 ($0.50/can)

With newer brands, the cost difference can be a bit larger in the range of 15%-30%. Either way, you'll need to buy a lot of cans to justify the full membership cost.

3. Car Rentals  

Costco Travel’s rental car deals have become less compelling. Recent searches show that the “discounted” rates often match what you’d get with a free loyalty account at major rental companies. In some cases, the Costco rate was just 2% lower. Hardly worth the membership unless you’re renting frequently..

4. Electronics  

Costco’s electronics prices are competitive, but rarely groundbreaking. Example pricing for the week of March 10, 2025:

  • Apple Airpods 4th Gen (Noise Cancelling) | Costco: $218.99 | Apple: $249.00 | Staples: $219.99
  • Apple Airpods Pro 2nd Gen | Costco: $278.99 | Apple: $329.00 | Staples: $269.99
  • Samsung 77" TV 77S90D | Costco: $3,796.99 | Best Buy: $3,799.99
  • Samsung 55" TV 55DU6900 | Costco: $496.99 | Best Buy: $499.99 | Walmart: $498.00

Solid pricing, but if you time your purchase around sales at other retailers, you’ll often match or beat Costco’s price—without needing a membership.

Final Verdict: Who Should and Shouldn’t Get a Costco Membership?

The Best Candidates for Costco Membership:

  • Households that drive frequently and have access to Costco gas
  • Families that buy in bulk and have ample storage
  • Cheese and frozen berry enthusiasts
  • Regular users of discounted gift cards

Who Might Skip the Membership:

  • Singles or couples with limited storage space
  • Those who shop infrequently or don’t consume in bulk
  • Anyone who doesn’t live near a Costco (gas savings evaporate if you’re burning fuel just to get there)

Bottom Line:

The fastest ways to break even involve high-ticket, repeatable purchases (gas, groceries) mixed with some larger ticket items (gift cards and Kirkland contact lenses). You can easily see how a Costco membership can pay for itself in just a few months of regular trips. That said, we all know the real reason you’re here: the $1.50 hot dog combo. And frankly, that alone justifies everything 🌭.