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 states 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.