Is a Costco Membership Worth It? We evaluated the cost of the membership fees, and even the gas to get there to see if a Costco membership was worth it! Also enjoy my other posts Real, Affordable, Gluten-free Food at Costco, and A Frugal Real Food Guide to Healthy Food at Costco.
Is a Costco membership worth it?
After price comparing my pantry staples between Costco and ALDI, I absolutely think so, but many readers were concerned about the cost of membership and how that played into the savings.
Still, others said that the Costco warehouse store was too far and they didn’t believe it was worth the gas to get there. Are they right?
I’ve had a Costco warehouse club membership for several years, and prior to getting a membership myself, I shopped at Costco with my step-mom. Do I think a Costco membership is worth it? Absolutely yes!
But we need to look at the numbers too, since the grocery budget dictates where and how we shop. Let’s tackle the issue of the gas first.
Is a Costco Membership Worth It?
Location and cost of gas to get to Costco
There are nearly 800 Costco locations across the world, but it’s entirely possible that there isn’t a local Costco to where you live. So we need to see how the cost of gas plays into whether or not a Costco membership is worth it.
Let’s pretend that gas costs $2.50 per gallon and your vehicle gets 20 miles per gallon. That means that for every 20 miles you drive, you’re paying $2.50.
Now let’s say the closest Costco to you is 60 miles, or approximately one hour away. Your total cost just for making a trip to Costco is $14. (If it takes you shorter/longer to get to Costco, divide/multiply accordingly.)
How can you justify the cost? Even with Costco being far away, there are a few ways to make the drive worth your while:
- make fewer trips, possibly just once a month or even every other month
- buy extras each trip you do make
- strategically plan trips around the holidays to take advantage of seasonal deals
- diligently keep a price book on the items you buy most often at Costco
- browse the warehouse coupons online before you make a trip
With drive time, fuel costs, and schedule logistics, I strategically plan a shopping trip at the start of the month to take advantage of bulk pricing and our membership.
Lesser-known Perks of a Costco Membership
If it’s a road trip to get to Costco, then you better make the most of it. While the affordable Kirkland private label, quality foods, and organic foods are the most common reasons why people shop at Costco, there are a few other perks to a Costco membership that make Costco worth it.
Gift Cards: We use “the gift card trick” often with our Costco membership, buying a full-price gift card for less than face value. For example, one Christmas we bought two $50 gift cards to a local restaurant for $80. We gave one as a gift and used the other for ourselves. Gift cards will vary from location to season, so it’s worth a swing through the aisle when you’re there.
Movie Tickets: Regal Cinemas and Cinemark offer 10-pack of movie tickets from Costco. They can be used at any of the branded theaters, and when you compare purchasing an adult ticket at the movie theater for $12.08, you’ll save over $30 in this purchase alone.
Theme Park Season Passes & Special Events: This is similar to the movie ticket and gift card concept, except there are deals for season passes and special events too. I’ve also done season deals for Legoland, SeaWorld, Universal Studios, the Zoo and Cirque du Soleil.
Gas: If your Costco has a gas station, it would be wise to fill up before you leave. Some locations report a savings of 30¢ per gallon!
Other Non-Food Purchases: Costco members can order checks, buy boats and cars with no-haggle pricing (like Carmax), furniture and generic medications and really rack up the savings.
An Amazing Return Policy: We’ve personally taken advantage of this one multiple times over in many ways. From strawberries to hot dogs, to rotisserie chickens, Costco offers a very generous “no questions asked” return policy. (Electronics and jewelry do have to be returned within a certain timeframe, so double check the policy.)
Shopping Costco Online
Another way to shop is Costco online! You can score some great deals when shopping non-perishables like contact solution, toilet paper, vitamins/supplements and food storage. They even have an online grocery store.
Many of the temporary items like clothing and shoes, as well as seasonal items like pool cleaning supplies, are available online too.
If you travel often, book your travel online through CostcoTravel.com to reduce the overall cost of the trip. Costco also offers vacation packages that come with bonus Costco Cash Cards, on-board credits on cruise ships, resort credits and bonus excursions. I personally haven’t taken advantage of Costco Travel, but I’ve heard nothing but rave reviews from those who have.
Is the Drive to Costco Worth it?
Depending on how far you live from Costco will determine whether it’s worth the membership or not. The goal is save what you’re spending on gas, on that trip.
Is a Costco Membership Worth the Fee?
There are three main types of Costco memberships, each with its own advantages. The one thing that all memberships have in common is that they can be refunded at any time.
Standard Gold Star Membership: $60 annually and includes a second household card for free
Business Membership: $60 annually, includes a second household card and allows you to make purchases for resale
Gold Star Executive Membership: Executive membership costs are $120 annually. Executive members receive a second household card, 2% rewards on most purchases, additional benefits on Costco services and benefits and upgrades with Costco Travel (more on these services and travel below). If it turns out your 2% reward does not cover the cost of the upgraded membership ($60), Costco will refund you the difference.
Note: Splitting a Costco membership with someone is not okay in their books. A second household card is intended for another person living at the same address. This could work though if you’re in a roommate situation.
How to Get a Costco Membership for Free
Living Social is a daily deal site and every so often, they have a deal when you purchase a NEW membership to Costco through them.
The Bottom Line on Costco Membership Worth
If you choose the executive membership, you technically have to spend around $2800 in one year in order to earn the 2% reward and break even on the cost of your membership.
However, since Costco will refund you the difference if you DON’T earn $60 in rewards, then you only have to save $60 over the course of a year to break even.
I know that by shopping at Costco instead of ALDI each month, I’m saving at least $60, but closer to $80. But if buying in bulk doesn’t fit well with you and your family, consider these items that the cost savings of them by themselves, make a Costco membership worth it:
Baby Diapers and Wipes: Sales on Kirkland diapers (which are made by Huggies!) worked out to be the same as price matching and couponing at local drug stores. Since buying from Costco was so much easier than couponing and price matching, we’d wait until Kirkland diapers and wipes were on sale and then buy enough to get us through until the next sale (usually 2-3 months later).
Wine: I’ve seen prices vary as much as $4 per bottle on local varieties, but Costco is known for carrying many imported wines that would otherwise be extremely expensive! Beer is also significantly more affordable.
Large Appliances: When we buy a house, we’ve already decided to get our appliances from Costco!
Electronics: Both of my DSLR cameras were from Costco, and since we bought them when they were on sale, we easily saved $200-300 over the cost of buying them elsewhere. We’ve also purchased a laptop and a desktop computer from Costco, and we saved tons of money on both.
Glasses / Contacts: The glasses I’m wearing as I type this post are from Costco! Both Mr. Crumbs and I wear contacts, and insurance covers them each year, but it means paying out of pocket for glasses. What would normally cost $200 at the eye doctor cost me $80 at Costco – and this included a new set of frames!
Blendtec Blender: We bought my favorite Blendtec blender at Costco and saved $100 over what we would have paid elsewhere! We loved that Blendtec has a warranty, but that Costco has their awesome return policy too.
Here are some other big ticket items that make the membership worth it:
- Pet Food and Supplies
- Insurance (homeowners and car)
- Roadside Assistance for Executive Membership
- Batteries (think Christmas gifts!)
- Tires
- Pool Cleaning Supplies
- TV’s
- Furniture
Is a Costco Membership Worth It – Not Always
Personally, I think every family can benefit from shopping at Costco. However, every family is different and a Costco membership might NOT be worth it if you:
- prefer to buy just enough food for the week and not have anything extras or leftover
- don’t have the time or energy to divide bulk food purchases into smaller portions
- work hours that preclude you from shopping when Costco is open (although you could still shop online)
- have to drive more than 4 hours to get to Costco (it’s not a gas issue, but a time issue)
- don’t have fridge, freezer and/or storage space for bulk items
- have a family of just one
- do not find the clothes, shoes or seasonal items to suit your taste
How to Use Costco Without a Membership
If you end up deciding that a Costco membership is not worth it for you. There are Costco services you can still take advantage of that don’t require you to have a membership:
- Pharmacy- counter medications
- Food Court
- Alcohol (in some states)
- Eye doctor appointments (glasses/contact purchases require a membership)
- Hearing appointments (aids require a membership)
- Price comparison shopping (tell them you’d like to browse the store before committing to a membership)
Another way to shop Costco without a membership is to use a Costco Cash Card. It’s similar to a gift card, with the only hiccup being they can only be purchased by people who have a Costco membership. If you’re fortunate enough to have friends or family who happen to have a Costco membership, have them purchase you a Costco Cash Card and then you can shop on your own schedule, without having to buy a membership yourself.
If you work for a company who has a Costco business membership, volunteer to be one of the designated shoppers. You’ll be issued a Costco card that you can use for yourself as well as the company.
Finally, the tried and true way to use Costco without a membership is to shop with a friend who is a member!
john
Tiffany, I couldn’t agree more with your insights on Costco memberships! The value is undeniable—bulk savings on quality products, from groceries to electronics, and excellent customer service. The membership pays for itself with the discounts and perks offered. It’s a smart investment for any household budget.
john
Having used Costco for years, I firmly believe the membership pays off. Despite initial concerns over cost and location, the savings on pantry essentials compared to ALDI make it worthwhile. With personal experience backing it up, I highly recommend a Costco membership for its value and quality.
Pearl
During the last year, I saved enough to justify the membership fee and the gas to drive the 50 miles to/from my nearest Costco just on my generic medication and my pet’s medicines. I also saved about $60 on my Shingrex (shingles) vaccine over what I would have paid in town. And their Kirkland brand boxed wines are excellent and about $3-6 dollars cheaper per box than boxed wines at our local stores.
Ann
There are many reasons I’m a longtime Costco shopper. Due to the large size of most Costco items I only shop about every 8 weeks–less trips to any store means less impulse buys. Also the large sizes came in handy with Covid. I was able to stay home for the first 16 weeks with no worries of running out of anything essential. (No standing in long lines for TP for me) Then one trip to Costco got me through another 16 weeks. This was only possible because of the large size of staples like rice, beans, pasta, flour, sugar, olive oil, canned fruits and veggies, and shelf stable soy and coconut milk.
Teresa
I just sorted out that Costco would be worth it for us (if we didn’t piggyback on my parents’ and inlaws’ memberships) for their ClearBlue Fertility Monitor supplies alone. We practice Natural Family Planning using the Marquette method, so whether we’re trying to conceive or avoid conceiving a baby, I have a consistent need for test sticks every month. This is only a tip for Canadians, but I get them on a deep discount every March and October on Costco.ca – usually $45; they’re currently $63 on Amazon or $75 at Shoppers Drug Mart! So in 2-3 boxes (anywhere from 2 – 9 months), the membership would pay for itself.
Another tip of what to buy at Costco – the steelhead trout is the best around. I’ve gotten some from elsewhere and it just doesn’t compare for flavour and freshness!
Sarah
I’m horrible at doing the homework and running numbers (I would rather write 100 essays before balancing a checkbook), but my husband was impressed at the phone deals through Costco vs. Verizon. Fun fact, it looks like Costco brand Kirkland Signature has come out with a new product, razor handle and 14 cartridges for $20!
Tiffany
Ooh – that’s a good find on the razor!! Thanks for sharing!
Kari H.
Thank you Tiffany for taking the time to make this information available to us! Great article 🙂
Costco has “top tier” gasoline and always has the lowest price around that we have found.
Our family has several dietary restrictions and Costco is BY FAR the cheapest for items like almond flour, Paleo products, canned organic tomato products, frozen organic fruits and vegetables, as well as fresh, organic produce.
A Costco employee shared once that they have a clothing “clearance” table which can be identified by the different cents vs. regular priced items. Can’t remember specifics but I believe regular items end in $.97 or $.47 but clearance if definitely different.
Tiffany
Thanks for the compliment Kari, and thanks for sharing your tips too!
Barb
Regular priced items at Costco end in .09 as in $.99 $.49 or $.69. Clearance items end in .07 as in $.97 or $.57. This applies to all items in the store, clothing, food, household items etc.
Stephanie
Can you please compare Costco to BJ’s? Which one saves you more money?
Tiffany
I’m so sorry Stephanie, but I don’t live near a BJ’s! 🙁 I’ve heard many people say it’s comparable to Sams though.
Stephanie
Is Sams Club comparable to Costco? Costco is 10 min farther for me than BJs and I am already in a good BJs routine and wondering if it is worth making the trip & the change to Costco when BJs has been going well. Thank you.
Joanna
Thank you for all these great insights! I know this is an older post, but I’m glad it popped up as “recommended” today. My husband’s employer recently partnered with Costco to offer discounted memberships for employees. They have a free shopping day where we can go in without a membership, I was on the fence about checking it out, but I just might give it a chance now!
Tiffany
You’re most welcome!! I hope you love the store as much as we do!
Kristie
Ok, now I am really thinking! I had a Costco membership at one time, but Costco is over an hour away for me. So, I decided not to keep the membership after it expired. But, you have a lot of good points in this article-like being able to shop online! I just went over to their site and checked out what they have. They have a good price on coconut oil and baking soda. I like to buy large quantities of both of those. Also, I am going to need a new computer sometime-it would be awesome to get one for a cheaper price. I am really pondering this now! Pinning for later!
Tiffany
Glad you found this helpful Kristie!
Tiffany
I agree Ste, it can be a slippery slope. It would be wise for anyone considering Costco to visit with a friend first as a trial, and see how they like having bulk produce on hand. To be devils’ advocate though, I never tried to reduce waste so hard as when I had so much on hand!
omar nuri
We have been members of Costco for some 15 years and very happy. I also have Sam’s club membership, but I don’t shop there much, although it is closer to me. About Costco, prices/costs only need to look at Gas prices, they are cheaper and I heard their gasoline is better quality than other, and to top that you get some reward at the end of year. Also look at the price of Pizza for example, for as long as I remember it has not gone up from about nine dollars, while due to inflation the price of almost everything has gone up in every other store. Way to go Costco, keep it up. We will stick with Costco.
Byb the way I just learned about the 50 dollar gift card for Military or Military retired Members, if that is the case I am retired federal Government which is basically the same as Military. Ok, then send me the 50.00 gift card. Thanks
R S
We eat lots of fresh foods and I just figured out that we save $150 on just beef and spinach each year. I came upon this article because times are tight and our membership is up for renewal, I guess I’ll be coughing up the fee one more time.
Tiffany
RS – it’s 100% worth it for us, but if you’re not sure, start keeping track of what you buy at Costco. Before you shop, see if you can find a better deal elsewhere. If you do renew and you end up cancelling (b/c you can consistently find better deals elsewhere), Costco will refund you the difference. But don’t ignore the “other” aspects of Costco if you use them, like tires, gas and non-food deals. Those alone save us tons each year!
Suzy Fivecoat
Tiffany, My husband and I have had a Costco card for many, many years but now we also take advantage of their auto & homeowners’ insurance through Ameriprise. Check it out. It’s THE cheapest deal out there.
Tiffany
Thanks for the tip Suzy – will do!
Nance
The executive membership is totally worth it because you get the year for free with the 2% rebate, as long as you shop there often. Our fam of 3 get our glasses there every year, after having the exam done (Dr. takes our insurance!) plus all the food, clothes, and household things we buy. We dished out the $110 one time, but haven’t paid for any consecutive years!! The gal at the desk “shared” this secret with us the first time we signed up. Glad she did!) And if you only have a regular membership, you can always upgrade. I believe they will backtrack purchases to the beginning of the year–double check on that one before taking my word for it.
Anne
One reason we maintain our Costco membership is because of the quality of their merchandise. We not only save money, but have very high quality for meats, fruits, and all other items we have purchased there.
Angie L
Thanks so much for the information you provide us! I’ve noticed your grocery shopping trips don’t include paper products/cleaners/laundry. Where do you budget these? I’ve always included them in our grocery budget. Honestly our budget is twice what yours is! I certainly need to do a better job. Thank you for helping give me some direction!
Tiffany
Thanks Angie! Paper/toiletries originally used to be part of our grocery budget, and then we stopped buying them over time… we switched to cloth napkins, started making our own laundry detergent & cleaners, etc. What I found was that a $9 investment into laundry detergent supplies covered more than 6 months worth of detergent. And the same applied to the other things we made too. So instead of including them in our grocery budget, we now include them in a small line item we call “household goods,” which covers everything from toiletries to new trash cans to lawn mowers. As for the expense of the ingredients, I spend maybe $30 every 4-6 months or so? It’s really very little, since buying bulk saves, but the ingredients are used repeatedly in many recipes. 🙂
Teresa
One thing Costco has good prices on toiletries wise is dental supplies. The packaging is atrocious, but we get floss in a five pack, and we get out sonicare toothbrush heads there in a five pack. It’s still $50 for the pack, but anywhere else it would be at least $10 more.
MilitaryWife
We haven’t tested this yet, but I have heard that for military families, when you sign up for your first year of membership you get a $50 gift card… so basically you get it for free the first year.
Jo-Ann
In addition to having a Costo near me, I also have a Sam’s Club nearby. With the exception of organic products, I find the prices are lower at Sam’s Club. For example, 4 pounds of butter at Sam’s was $8.99 and at Costco was $9.99. Because I purchase for a small retail business, every little bit helps.
Costco is closer to me (5 miles vs 10 miles) but that is not a major factor. I’ve decided not to renew my Costco membership. We don’t have an Aldi.