Jump to section Facebook Twitter LinkedIn Copy URL Email The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information. The Capital One Spark Cash Plus is a straightforward business credit card .
Cardholders earn unlimited 2% cash back on every purchase, with no spending caps or bonus-category restrictions. But unlike the no-annual-fee Capital One Spark Cash Select , which earns 1.5% cash back on purchases, the Spark Cash Plus charges a $150 annual fee.
So, is the extra 0.5% cash back enough to justify paying $150 a year? Let's break it down.
For lower-spending businesses, likely not. If you're comparing the Spark Cash Plus with the no-annual-fee Spark Cash Select based solely on ongoing cash-back value, you need to spend more than $30,000 per year before the Spark Cash Plus comes out ahead.
Even then, the advantage is relatively small at first. For example, a business spending $36,000 annually would earn just $30 more in net rewards with the Spark Cash Plus.
The card becomes more compelling, however, as your business spending increases. And if you spend at least $150,000 annually, Capital One will refund the $150 annual fee.
The calculation is also much more favorable in the first year, when the Spark Cash Plus' welcome offer can provide significantly more value than the annual fee.
Related: How to decide if a credit card's annual fee is worth paying
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There are two break-even points worth understanding. At $7,500, the Spark Cash Plus earns enough cash back to equal its annual fee. But you'll need to spend $30,000 before it catches up with the no-annual-fee Spark Cash Select.
The first is the fee-only break-even point.
Since the Spark Cash Plus earns 2% cash back, you'd need to spend:
At $7,500 in annual spending, you'd earn $150 in cash back, exactly offsetting the card's $150 annual fee. But that doesn't necessarily mean the Spark Cash Plus is actually better than a no-annual-fee card at $7,500 in spending.
The Spark Cash Select earns 1.5% cash back without charging an annual fee. At $7,500 in spending, the Spark Cash Select would earn $112.50, while the Spark Cash Plus would earn $150 but charge a $150 annual fee. Your net rewards would therefore be $0 with the Spark Cash Plus versus $112.50 with the Spark Cash Select.
That's where the second break-even point of $30,000 comes in.
The Spark Cash Plus earns an additional 0.5 percentage points over the Spark Cash Select. To make up for its $150 annual fee using that additional earning rate, you need:
At $30,000 in annual spending, the Spark Cash Plus earns $600 in cash back, or $450 after subtracting its $150 annual fee. The Spark Cash Select also earns $450. Above $30,000, the Spark Cash Plus s…