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Costco Makes Half Its Profit From a $65 Card, Not Food

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About Costco Makes Half Its Profit From a $65 Card, Not Food

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Costco makes about half of its operating profit from membership fees, not food. Here's how the $65 card works, why Costco barely marks up its goods, and how to check if the card is worth it for you. Costco sold about $297 billion of goods last fiscal year, and membership fees were roughly half of its operating profit. We cover the 92% renewal rate, the $1.50 hot dog, and a simple break-even formula. Sources: Costco Q4 FY2026 earnings release (Sept 24, 2026) The $65 fee is the standard Gold Star membership. The break-even example is illustrative, not Costco's numbers. Educational only, not financial advice. Not affiliated with Costco. #Costco #BusinessEconomics #Money

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