Here's How to Get Costco to Reimburse Your Membership Fee

Image source: Getty Images

Shopping at Costco often means getting to save money on items like groceries, paper products, cleaning supplies, and other such purchases many of us make on a regular basis. But to reap that savings, you have to spend some money to get in the door.

A basic Costco membership costs $60 a year right now, while an Executive membership costs $120. Beginning Sept. 1, though, these fees are rising. Once that increase takes effect, a basic Costco membership will cost $65 per year, while an Executive membership will cost $130.

For some people, the idea of having to spend any money to get access to Costco isn't appealing. And those who have trouble with the idea of spending $60 or $120 will no doubt be hesitant to join Costco once those fees increase.

But there's a pretty easy way to get Costco to reimburse your membership. And once you see what it is, you may be inclined to sign up, even if not wanting to pay a fee has stopped you from joining before.

When you earn enough cash back to cover your membership fee

You won't earn any cash back on your Costco purchases if you stick to a basic membership. But with an Executive membership, you get to earn 2% back on Costco purchases, including those made online. And if you shop at Costco regularly, you may find that you're able to rack up enough cash back to more than cover the cost of an Executive membership.

Based on the current cost of an Executive membership, it takes $6,000 in annual Costco spending to cover that fee entirely. Once the cost an Executive membership goes up to $130, it will take $6,500. But getting to that point may not be as difficult as you might imagine.

Let's say you shop at Costco 50 weeks out of the year and spend $130 each week. That's $6,500 right there.

Even if you don't go to Costco quite as often, let's say you spend $130 a week for 40 weeks out of the year. That brings you to $5,200. But you might make additional one-off purchases that get you to that $6,500 threshold, like replacing a laptop, stocking up on low-cost kids' apparel, or even loading up on holiday gifts once Costco beefs up its seasonal selection.

Look at the big picture

You may not be in love with the idea of having to pay money just to access a store. Heck, Target doesn't force you to be a member to get in, and neither do traditional supermarkets. So it's easy to see why Costco's membership fee model may not sit well with you.

But remember, even if you don't spend enough at Costco to recoup your membership fee in full via cash back from an Executive membership, the savings you reap on your purchases during the year might easily make you whole.

In fact, let's forget about that Executive membership cash back for a second. Let's say your Costco shopping saves you $40 a month on groceries and household products compared to buying them at big-box stores or supermarkets. That's $480 in savings. So even when we subtract the cost of an Executive membership come September, you're still up $350.

For this reason, you may want to try to move past the fact you'll need to shell out some money to join Costco and instead focus on your overall savings picture. You may not want to pay a fee to get into Costco. But if you crunch the numbers, you might come to the conclusion that it's actually a smart financial move.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. Maurie Backman has positions in Target. The Motley Fool has positions in and recommends Costco Wholesale and Target. The Motley Fool has a disclosure policy .