Rewards budget calculator
Find out what one karma point should be worth, how to price gift cards and other rewards, and what your recognition program will cost each month.
Results
Recommended value of 1 karma
—
To stay within budget even if everyone gives their full limit, value one karma at —.
| Reward | Price | An average teammate earns it in |
|---|---|---|
| $10 gift card | — | — |
| $25 gift card | — | — |
| $50 gift card | — | — |
| $100 gift card | — | — |
- Expected spend: — per month
- Per person: — per month
- Per year: —
- Processing fee: — per month
- Most you can spend: — per month, if everyone gives their full limit
- Rewards may feel out of reach. A — gift card takes an average teammate — to earn. People stay motivated when the first reward is a month or two away: add a smaller reward or raise the budget per person.
- Consider resetting balances. Your team already holds — karma, worth about — at this value, or — months of your budget. Plan for it, or reset balances before you launch gift cards: Settings → Danger zone → Reset data → Coins.
See how we calculated this
- Most karma your team can give: — people × — karma = — karma a month.
- Automatic karma: — people × — karma a year for birthdays and work anniversaries ÷ 12 months = — a month.
- Expected karma: people rarely give their full limit. At — usage, an average person gives — of the — karma they can give a month, so your team gives —. Plus — automatic = — karma a month.
- Budget after the 10% gift card fee: — ÷ 1.1 = —.
- Value of 1 karma: — ÷ — karma = —.
- Price of a — gift card: — ÷ — = — karma, rounded up.
- Time to earn it: — karma ÷ — karma per person a month = — months.
Recognition works without rewards. It works even better with the right ones.
Rewards are optional. Turn them on, and karma earned through peer recognition becomes gift cards, custom perks or a team celebration.
Automated gift cards
Employees spend karma on popular brands from their country's catalog, or donate it to charity. No manual processing.
Custom company rewards
Days off, team dinners, learning budgets, swag. Create any reward, set its karma price and even rename the points.
Group celebrations
Teammates pool karma toward a shared goal. When it's reached, the reward unlocks for everyone automatically.
6 budgeting mistakes, and how to fix them
Most reward budgets go wrong in the same few ways. Each one takes a minute to fix in Karma's settings.
01
No limit set
Karma has no limit by default, so spending has no ceiling.
Set a limit in Settings → Global before you turn on gift cards.
02
A first reward out of reach
If the cheapest reward takes more than a month or two to earn, people stop trying.
Keep one reward 1–2 months away, and add bigger ones to save up for.
03
Set and forget
Usage grows as people get used to giving karma.
Review every quarter. If people give more than planned, raise prices or lower the limit.
04
Forgetting old balances
Unspent karma never expires, so old points land on your new budget.
Reset balances when you relaunch the program.
05
Ignoring reactions
Each reaction adds 0.1 karma to a balance by default, and it adds up.
Lower the reaction weight if your budget is tight.
06
Only paid rewards
Every gift card costs its value plus the 10% fee.
Mix in a day off, lunch with the CEO or team swag. You fulfill them yourself, with no fee.
Frequently asked questions
How much should we budget for employee rewards?
A common starting point is $10–20 per person per month. Start with an amount you can keep up for a year, then use the calculator to turn it into a karma value and reward prices.
How much is one karma point worth?
As much as you decide. Karma doesn't fix an exchange rate: you set it with your limit and reward prices. If a $25 gift card costs 25 karma, one karma is worth $1.
How many karma points should a gift card cost?
Divide the gift card's value by the value of one karma and round up. Then check that an average teammate can earn your cheapest reward in a month or two.
How much does a gift card cost us?
Its face value plus a 10% processing fee, charged to your company card in USD when an employee redeems the reward. Gift cards in other currencies are converted to USD at the current exchange rate. For example, a $50 gift card costs $55.
Do we pay for karma that hasn't been spent?
No. You pay only when someone redeems a gift card. Unspent karma stays in employee balances and doesn't expire, so plan for it, or reset balances when you relaunch the program.
Can we offer rewards other than gift cards?
Yes. Add custom rewards you fulfill yourself, like a day off or a team lunch, or group rewards that several people chip in for. There's no processing fee on them.
Put your rewards budget to work
Add Karma to Slack, set your limit and reward prices, and recognition starts turning into rewards people pick themselves. Want a hand with the numbers? Book a demo.