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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.
Is the Spark Cash Plus worth the annual fee?
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.
Here’s how the numbers break down.
Related: How to decide if a credit card’s annual fee is worth paying
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How much do you need to spend for the Spark Cash Plus to be worth it?
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:
$150 ÷ 2% = $7,500
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:
$150 ÷ 0.5% = $30,000
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 starts pulling ahead.
Here’s how the ongoing value compares at several monthly business spending levels:
| Monthly business spending | Annual spending | Spark Cash Plus net rewards | Spark Cash Select rewards | Difference |
|---|---|---|---|---|
$12,000 | $90 | $180 | Select +$90 | |
$36,000 | $570 | $540 | Plus +$30 | |
$60,000 | $1,050 | $900 | Plus +$150 | |
$120,000 | $2,250 | $1,800 | Plus +$450 | |
$240,000 | $4,800* | $3,600 | Plus +$1,200 |
*At $240,000 in annual spending, the $150 annual fee is refunded because the business exceeds the $150,000 annual spending threshold.
The difference becomes increasingly noticeable as your business spending rises. A business spending $36,000 annually comes out just $30 ahead with the Spark Cash Plus, while one spending $120,000 annually earns $450 more in net cash back than it would with the Spark Cash Select.
$150,000 in annual spending is another important threshold because Capital One refunds the Spark Cash Plus’ $150 annual fee every year you spend at least $150,000 on the card. This makes the card’s ongoing value proposition even stronger for high-spending businesses.
Related: 8 unexpected business expenses you can put on a card
How much is the Spark Cash Plus worth in the first year?
The Spark Cash Plus is considerably easier to justify in the first year thanks to its current welcome offer.
New cardholders can earn a one-time cash bonus of $2,000 after spending $30,000 on purchases in the first three months from account opening. Earn an additional $2,000 cash bonus for every $500,000 spent during the first year.
That means a new cardholder who can comfortably meet the $30,000 spending requirement could receive $2,000 in additional first-year value before even considering the card’s regular 2% cash-back earnings.
Here’s how the first-year math looks if you spend $30,000:
| First-year value at $30,000 spend | Value |
|---|---|
$600 | |
$2,000 | |
Total rewards and credits | $2,600 |
-$150 | |
$2,450 |
But you shouldn’t use that figure to determine whether the card is worth keeping long term.
After the first year, you’ll be relying primarily on the card’s 2% cash-back rate to justify the annual fee. That’s when the $30,000 annual spending threshold becomes much more important.
Related The best business credit cards for earning cash back
What else can make the Spark Cash Plus worth it?
Cash back isn’t the only reason a high-spending business might prefer the Spark Cash Plus.
The card’s biggest advantage is simplicity. You’ll earn unlimited 2% cash back on every purchase, with no spending caps or bonus categories to track. You’ll also earn 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Business Travel.
The Spark Cash Plus also has no preset spending limit, meaning its purchasing power can adjust based on factors such as spending behavior, payment history and credit profile. That isn’t the same as having unlimited purchasing power, but it can provide more flexibility than a traditional card with a fixed credit limit.
The card also offers free employee and virtual cards, which can make it easier to consolidate business spending while earning rewards on employee purchases.
For businesses spending at least $150,000 annually, the annual-fee refund makes the card even easier to justify.
Who should get the Spark Cash Plus?
The Spark Cash Plus is best suited to higher-spending businesses that want to earn a straightforward 2% cash back across purchases without tracking bonus categories. You’ll also need to be comfortable paying your balance in full.
The card makes the most sense if your business spends well above $30,000 per year, since that’s when its higher cash-back rate starts delivering increasingly meaningful value compared with the no-annual-fee Spark Cash Select. It’s particularly compelling for businesses spending at least $150,000 annually, since Capital One will refund the $150 annual fee.
On the other hand, businesses spending less than $30,000 per year will generally be better off with the Spark Cash Select if they’re choosing solely based on ongoing cash-back value.
Related: A guide to Capital One’s Spark business cards
Bottom line
If your business spends less than $30,000 annually, the no-annual-fee Spark Cash Select will generally provide better ongoing net rewards based solely on its earning rate.
Above $30,000, the Spark Cash Plus starts pulling ahead, and the advantage grows as your business spends more. For businesses spending at least $150,000 annually, the annual-fee refund makes the Spark Cash Plus particularly compelling.
The current welcome offer can also make the first-year math substantially more favorable, but I’d choose the card based on whether its 2% cash-back rate, no preset spending limit and other ongoing features make sense for your business after the first year.
To learn more, read our full review of the Capital One Spark Cash Plus.
