Gift Card Value Calculator
Calculate the true value of a gift card when buying at a discount, receiving as a gift, or reselling.
Factor in unused balances and inactivity fees.
The True Value of a Gift Card A gift card with a $100 face value is only worth $100 if you use every cent of it. In practice, billions of dollars in gift card balances go unused every year, a phenomenon known as “breakage.” Studies estimate that 10–20% of gift card value is never redeemed in the United States. Retailers count on this: gift cards are highly profitable precisely because many are never fully used.
Buying a Gift Card at a Discount Discounted gift cards are widely available through sites like Raise, CardCash, and Gift Card Granny. You might pay $85 for a $100 gift card at a retailer you frequently use. Your effective discount = 1 − (Amount Paid / Face Value) = 1 − ($85 / $100) = 15%. This is a genuine, guaranteed return, better than most investment vehicles for spending you would do anyway. The savings are most valuable when you use the full balance quickly.
Breakage: The Silent Thief If you only use 80% of a $100 gift card you paid $85 for, your effective yield changes: Effective value used = $100 × 80% = $80 Net: you paid $85 and got $80 of value, a $5 loss despite the apparent 15% discount. The breakage point where you break even: Usage% = Amount Paid / Face Value (e.g., 85% for the example above).
Inactivity Fees Many gift cards charge a monthly inactivity fee after 12–24 months of no use. Under US law (Credit CARD Act of 2009), fees can only begin after 12 months of inactivity. Typical inactivity fees: $2–$5 per month. A $10 balance on a forgotten card earning a $3/month fee will be drained to zero in 3–4 months.
Expiration Laws in the US Federal law (Credit CARD Act of 2009): gift cards cannot expire within 5 years of purchase. Most states have additional protections; many prohibit expiration entirely on gift cards sold to consumers. Some states (CA, WA, NJ) require that gift card balances be paid out in cash when the balance falls below $10. Electronic gift cards (e-gift cards) have identical legal protections as physical cards.
Reselling Gift Cards Secondary marketplaces buy unwanted gift cards, typically paying 70–92% of face value depending on brand desirability. High-demand brands (Amazon, Target, Walmart): 85–92% payout. Niche or restaurant cards: 60–75% payout. If you received a $100 gift card as a gift and sell it for $88, your “loss” is only $12 — much better than a card sitting unused for years.