KEY POINTS

• A Costco Executive membership costs twice as much as a basic one.
• Executive members earn 2% back on their Costco purchases.
• There are caps on Executive membership cash back, and not every purchase qualifies for it, so it's important to know the rules of the program.

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Joining Costco is a great way to reap savings on a wide range of products and services. And one good way to eke extra value out of your Costco membership is to sign up for the Executive membership program.

A basic Costco membership costs $60 a year. By contrast, you'll pay double, or $120, for an Executive membership.

But that extra $60 per year comes with one very notable perk -- the opportunity to score 2% cash back on your Costco purchases. So it's important to run the numbers and see if an Executive membership makes sense for you.

It's also important to know the ins and outs of the program so you can make an informed decision. Here are a few important details.

1. Your break-even point is $3,000

If you spend $3,000 a year at Costco, you break even on the Executive membership upgrade fee of $60, since 2% back on $3,000 equals $60. If you're not sure whether the Executive membership is worth it, take a look at your typical Costco spending and see what it amounts to.

And if you're brand-new to Costco, think about your schedule and household needs. Do you have a larger family? If so, you may be more inclined to buy a lot...

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