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Is Costco Worth It for One Person?

While most people would instantly assume the answer is “no” for this question, the reality is it depends on a couple of key factors. If you drive a lot and there is a Costco gas station near your house (or along your commute), then the answer is usually, “Yes, a Costco membership is worth it for one person.” You can see if the amount you’ll save on gas will pay for the membership fee with the Costco Gas Calculator.

If you don’t normally purchase gas at Costco, it gets a lot more difficult to justify the $55 membership fee each year. There are exceptions, such as if you run a small business and buy products from Costco to resell, but for the average single person it probably doesn’t make much sense. For those who find that the membership price doesn’t pay for what they buy each year, it’s possible to shop at Costco without a membership which is a valid option for those who only need to buy something at the warehouse a few times a year.

Is Costco Worth It for a Couple?

This is another question with an answer that’s dependant on how the couple shops. For many couples it’s about a break even scenario. If there is a Costco which is close by and convenient to visit, then a Costco membership is likely worth it. If the nearest Costco is miles away and you have to make a special effort to go there, then it’s much less likely that a membership is worth it. Again, your shopping habits will also play a big role in determining whether or not the membership is worth the price. Those couples who have a large house and do a lot of entertaining, including big gatherings at the holidays, are more likely to find the membership worthwhile than couples who live in a smaller apartment and rarely have big gatherings. If you aren’t sure if a Costco membership is worthwhile for you as a couple, the chances are that it probably isn’t (or a break even scenario at best).

Is Costco Worth It for a Family?

While there may be some exceptions, in general, a Costco membership will end up paying for itself if you have a family. The larger the family, the more likely a Costco membership is worth it. Again, distance from the house and convenience in getting there will play a role in determining if it’s actually worthwhile, but because families are able to take advantage of the bulk items Costco sells to a greater degree than one person or a couple, it’s easier for the membership fee to pay for itself for families.

Is Costco Worth It for Groceries?

This is another question that comes up a lot, and it greatly depends on how you grocery shop rather than how big your family is. If you use coupons and shop specifically for items only when they go on sale, then you’ll get a better value from your local grocery store than you will from Costco. If, on the other hand, you don’t shop sales or look for discounts and basically buy what you need when you need it, then you’ll likely get better prices at Costco. The warehouse has good prices on most food items, but it doesn’t have the best prices. Those who take the time to shop grocery store sales can save more money shopping at their local store, but those who buy at normal retail price will do better at Costco most of the time.

One big exception is the Costco bakery department. The Costco bakery items made at their stores are usually a much better value than what you could get at a grocery store bakery. The classic example are the Costco pies. They are twice as big as the ones found in the grocery store and are usually priced less.

If you have never shopped at one of their warehouses, it’s definitely worth the time to check it out. Since they don’t have one-day guest passes, you can do so with a friend who already has a membership or by getting a Costco cash card. Seeing what the stores have to offer will give you a much better idea whether or not Costco would be worth it for you.

(Photo courtesy of David McKelvey)

For those who don’t shop at Costco regularly enough to make a membership worthwhile, it might be worth getting one if your Costco has a gas station, and you fill up your vehicle on a regular basis. The question you should be asking yourself is, “Will I save money if I get a Costco membership simply from the money I save on gas?”

There are quite a few variables that go into this calculation, and you’re going to have to make some estimates to decide if you’ll receive enough savings by filling up your cars with fuel there instead of at other gas stations in the area. For instance, the price difference between Costco and where you regularly fill up your car will fluctuate throughout the year. In this case, you can use the difference in price right now to make the estimate, or you can go with a general guess of the difference in prices throughout the year. This can vary quite dramatically depending on where you live. I have found that when looking at the prices around my area, Costco gas is usually around $0.15 less per gallon than other local gas stations. I have also seen it as much as $0.30 below the going rate around it, and as little as seven cents.

The other estimate you need to make is the number of gallons of gas you buy each week. You can keep track of this for a week, or do a good estimate from your past experience. Insert these two numbers into the simple Costco Gas Calculator below then hit “calculate,” and you’ll know if you’ll end up saving money by purchasing a membership at Costco.

Costco Gas Savings Calculator

How many gallons do you use in a week?

How much cheaper is Costco’s gas compared to the next cheapest option?
$

This is a simple formula (gallons purchased per week x cost difference x 52.1775 weeks per year) that should give you a general idea of whether or not it makes sense for you to purchase a membership on the gas savings alone. Costco’s gas is comparable to other top brand fuel, but it’s still usually less expensive than the lowest off-brand fuel being sold. Here are a few other things that you need to consider that might sway the decision one way or the other if your calculations come out almost even.

Will You Shop Sometimes?

If you can basically break even for the membership with the savings when purchasing gas, would a free membership to the warehouse save you money? If you weren’t interested in paying for a membership in the past because you wouldn’t use it enough, that doesn’t mean that you wouldn’t use it at all if it were free. This might result in additional savings that makes getting a membership worthwhile. On the other hand, it could also cost you more depending on how you shop.

Is the Station out of the Way?

If your nearest Costco store is nearby, or along a route that you drive on a regular basis, then there’s no additional calculations that you need to make. If, however, you must drive out of your way to get to Costco, you need to estimate the extra monetary and time cost of driving those extra miles when making the calculation. A more expensive station might actually cost less if you have to drive out of your way to use the Costco station.

Do you have a cash back Credit Card?

If you use a cash back credit card to get additional savings at gas stations, you need to take this into consideration as well. You can’t use a cash back credit card at Costco gas stations, so you will forfeit the savings from using it. This can be a significant amount. If you have a credit card that gives 3% to 5% cash back at gas stations, that’s a $0.12 to $0.20 savings a gallon when gas costs $4.00.

In the end, there’s going to be a lot of personal factors that determine whether getting a membership makes sense. Those with bigger vehicles, multiple vehicles or long commutes will find that getting a membership makes sense, while someone with a short commute and a fuel-efficient car might not. In the end, input your numbers, and the calculator will give you a good sense of the savings you might see, and an opportunity to consider a bit more critically if the savings make sense or not.

(Photo courtesy of terrykimura)

Is Costco Worth It?