Should I downgrade from Executive?

If you downgrade, Costco refunds your $65 upgrade fee, minus any 2% reward you've already earned. This works out which way leaves you better off.

How the refund works

Costco's terms say you can get the Executive upgrade fee back by downgrading to Gold Star or Business, or by cancelling. Any 2% reward already issued or earned is subtracted from that refund, and forfeited if it's larger than the refund.

• Earned less than $65? You get back $65 minus what you earned.
• Earned $65 or more? You get nothing back and lose the reward, so staying is better.

So the question is simple: is the refund ($65 minus what you've earned so far) bigger than the full reward you'd get by staying? Right after you upgrade, downgrading wins if your yearly reward would be under $65. The longer you wait, the more you've earned and the smaller the refund. Near the end of the year, it only wins if your reward is under about $32.50.

Things to know before you downgrade

• Downgrades happen at the warehouse. Go to the membership counter and they'll process it.
• Timing matters. The reward is issued about three months before your renewal. Once you've received it, it counts against any refund.
• Check the exact amount. This calculator estimates. Ask the membership counter for your actual reward balance and refund before you decide.
• You can upgrade again later. If your spending goes up, Executive is still there. Only purchases after an upgrade earn the reward.

Related

• The Executive 2% reward, explained
• Is the Executive upgrade worth it? (for a full year)

Rules last checked October 12, 2026 against Costco's Executive reward terms.