Paying a membership fee to shop — and spend more money — can help your budget or hurt it. The difference between those two outcomes hinges on the savings your membership provides, and your ability to access those savings.
In 2024, a Costco membership costs either $65 or $130 annually. To make that investment back, you must save on products and services you’d buy anyway. So that gallon-sized can of black olives that’s been in your pantry for a year? Here’s some real-talk: That purchase didn’t save you anything, regardless of the ultra-low, per-ounce price.
Fortunately, Costco has plenty of savings opportunities outside of its canned goods offering. Let’s explore the best nine of them.
Costco gas
According to The Ascent, Costco’s gas is about $0.20 cheaper per gallon than the average gas station. At that rate, you’d pay for the $60 Costco membership after buying 300 gallons of gas.
For context, the average driver probably uses about 575 gallons of gas annually. That number comes from dividing the total gallons of motor fuel used in the U.S. each year and the number of U.S. drivers.
Costco hot dogs
You can still buy a hot dog and soda at Costco for $1.50. This is the original price of this combo, which dates back to 1985. If Costco had raised its price on the hot dogs to keep pace with inflation, that lunch deal would cost you $4.50 today.
To calculate the savings you unlock every time you eat a Costco hot dog combo, you can use $4.50 as the meal’s value or whatever you’d pay eating somewhere else. A combo meal from Taco Bell, for example, costs $6.39 on average according to World Population Review.
So enjoying a Costco hot dog once monthly in lieu of another fast food meal could save you $36 to $58.68 a year. On the high side of that range, hot dogs almost pay for your membership.
Costco pizza
A full Costco pizza measures 18 inches in diameter, contains 12 slices, and costs $9.95. That’s $8.38 less than the nationwide average cost for a large cheese pizza. So, adding a pizza to your monthly meal rotation saves you $100.56 per year.
You can alternatively buy a slice of Costco pizza for $1.99. The economics here are slightly less attractive than the hot dog numbers because you must also buy a drink to wash down that cheesy goodness. Fortunately, you can buy a 20-oz. soda for $0.69 with your $1.99 slice. That lunch meal can save you $21.84 to $44.52 annually, assuming 12 pizza lunches.
Costco rotisserie chicken
Costco’s $4.99 rotisserie chicken has a cult-like following, and for good reason. The juicy, savory bird usually yields about 3 cups of meat you can use to make salad, quesadillas, wraps, and so much more.
This is another Costco product that’s seemingly immune to inflation. Costco has taken big measures to hold this price point stable, including buying its own chicken farm.
Costco sheet cake
Costco prices its half-sheet cakes at $24.99. For that price, you get two layers of cake, filling, and icing. Buy that same cake from a baker and you’ll spend $30 to $70, depending on the location and how the cake is decorated.
This one isn’t a big saver, because you probably don’t need more than one or two cakes annually. But if you’re routinely raising your hand to bring desserts to potlucks, keep the Costco sheet cake in mind.
Costco eye exams
Costco’s optometry services are very convenient and affordable, even for those who have vision insurance. My experience with VSP is that it doesn’t cover much — I could potentially pay less at Costco with no insurance if I had a location nearby.
The average cost of Costco eye exam is $50 to $100. This compares to average exam costs of $75 to $200 elsewhere. Since the ranges overlap, any savings calculations we make won’t be worth much. So the takeaway is: Do your own price comparisons on Costco’s optometry services versus other options in your area. If you don’t have vision insurance, Costco is very likely to be cheaper for you.
Costco pharmacy
Costco’s pharmacies generally have low or the lowest prices on medications. As reported by The Ascent, Consumer Reports once used secret shoppers to find that Costco prices on five popular meds were:
- $46 less than Sam’s Club
- $413 less than Walmart
- $823 less than CVS or Target
You can also use your Costco membership card to get lower medication prices at any participating pharmacy. Buying directly from Costco still gets you the lowest price, but you can still save if you prefer to use a different pharmacy. The table below shows the prices of Lipitor and Gabapentin using your Costco member discount at different pharmacies.
| Drug | Details | Pharmacy | Price |
| Lipitor | Generic, 20 mg, 90 tablets | Costco | $9.99 |
| Costco Home Delivery | $11.99 | ||
| Safeway | $15.79 | ||
| Healthmart Atlas | $15.79 | ||
| Albertsons | $15.79 | ||
| Walgreens | $23.79 | ||
| Gabapentin | Generic Neurontin, 300 mg, 60 capsules | Costco | $10.99 |
| Costco Home Delivery | $12.99 | ||
| Safeway | $16.79 | ||
| Healthmart Atlas | $16.79 | ||
| Albertsons | $16.79 | ||
| Walgreens | $25.79 |
Depending on the medications you need, your annual savings here could be hundreds or more.
Costco electronics and appliances
On televisions, projectors, computers, and major appliances, Costco extends the manufacturer’s warranty for a second year. The club store also accepts returns on most electronics and appliance until 90 days after the purchase date.
These protections will pay for your annual membership if you have trouble with an appliance you bought. I’ve made use of Costco’s warranty on a television and a VCR. Both stopped functioning more than a year after purchase, so the standard manufacturer’s warranty would have expired.
Costconext.Com
Costconext.com is a referral website that links Costco members to online deals with reputable brands. Members can browse brands on the site and dive into each one to learn more. A tap or click on the brand image prompts you to sign in with your Costco credentials. From there, you jump over to the brand’s website to view your member pricing.
Is Costco worth it?
A Costco membership is a storehouse of value, especially if you like chicken, pizza, and hot dogs. Just remember not to spend all your savings on that giant can of olives.