REI Co-op membership costs $20 once and gives you a lifetime dividend on purchases
REI Co-op is a consumer cooperative, not a traditional retailer. When you pay the $20 membership fee, you become a partial owner of the company. In return, you receive an annual dividend — a percentage of what you spent on REI purchases that year, returned to you as a credit or check. The dividend rate is typically 10 percent, though it varies slightly by membership tier and product category.
The $20 fee is a one-time charge. You do not renew it annually. Your membership remains active for life, even if you do not make purchases. The dividend is calculated once per year, usually in February or March, based on your spending from the previous calendar year.
REI also offers a credit card tied to the co-op. Cardholders earn an additional 1 to 5 percent back on purchases depending on the card tier, and they receive the standard co-op dividend on top of that. The credit card is optional; membership alone includes the dividend.
Key Takeaways
- REI Co-op membership costs $20 one time and remains active for your lifetime, with no annual renewal required.
- Members receive an annual dividend of approximately 10 percent on may be able to access purchases, paid as a credit or check each spring.
- The dividend applies to most items sold at REI stores and online, but excludes some categories like gift cards and certain services.
- REI also sells a co-op credit card that earns additional rewards on top of the standard member dividend.
- Non-members can shop at REI without joining, but they do not receive the dividend or member discounts.
What the $20 membership fee actually covers
The $20 is a one-time ownership stake in REI Co-op. You are buying a share of the company, which is why you receive a dividend. This is different from a subscription or membership renewal — you pay once, and the membership does not expire. If you never shop at REI again after paying the $20, you still own that share.
The membership includes access to member-only sales, discounts on REI classes and workshops, and early access to seasonal sales. Members also receive the REI Co-op magazine and can vote on co-op governance if they choose to participate in annual meetings.
Non-members can shop at REI without paying the $20, but they do not receive the dividend or member discounts. For a non-member, a $100 purchase is just $100. For a member, that same $100 purchase generates roughly $10 in dividend credit.
How the annual dividend is calculated and paid
REI calculates your dividend based on the total amount you spent on may be able to access purchases during the calendar year (January through December). The dividend rate is typically 10 percent, meaning you receive $10 back for every $100 spent. Some product categories and services carry different rates — for example, certain electronics or services may earn a lower percentage.
The dividend is paid once per year, usually in February or March. REI notifies you by email or mail when your dividend is ready. You can choose to receive it as a credit to your REI account (which you can use on future purchases) or as a check mailed to your address. The credit option is faster and more common.
If you have not spent anything at REI during the year, you still receive a small dividend — typically $1 or $2 — straightforward for being a member. This is sometimes called the "member dividend" and reflects your ownership stake in the co-op.
Comparing REI membership to non-member shopping
The break-even point for membership is roughly $200 in annual purchases. At that spending level, your 10 percent dividend ($20) covers the initial membership fee. Any spending beyond $200 in a year means the dividend exceeds what you paid to join. If you spend less than $200 per year at REI, the membership may not pay for itself in dividend alone — though you still benefit from member-only sales and discounts.
Non-members can shop at REI without any upfront cost, but they receive no dividend and miss out on member-only sales and early access to seasonal discounts. The choice between membership and non-member shopping depends on how often you shop at REI and how much you typically spend per year. A table below shows the key differences side by side.
| Factor | REI Member | Non-Member |
|---|---|---|
| Upfront cost | $20 one time | $0 |
| Annual dividend | ~10% of purchases | None |
| Member-only sales | Yes | No |
| Early sale access | Yes | No |
| Dividend minimum | $1–$2 per year | N/A |
| Membership renewal | Never | N/A |
REI Co-op credit card rewards and how they stack
REI offers a co-op credit card through a bank partner. The card earns rewards on all purchases, both at REI and at other retailers. The reward rate depends on the card tier: a standard card typically earns 1 percent back, while premium tiers earn 2 to 5 percent back on REI purchases.
The key point is that credit card rewards and the co-op dividend are separate. If you are a member and use the co-op credit card, you earn both the dividend and the card rewards on the same purchase. A $100 purchase at REI with the premium card might earn $5 in card rewards plus $10 in annual dividend, for a total of $15 back — though the dividend is paid once per year, not when ready.
The credit card is optional. You receive the full co-op dividend as a member whether or not you hold the card. The card is useful only if you shop at REI frequently enough that the extra rewards justify any annual fee the card may carry.
What purchases count toward the dividend and what do not
Most items sold at REI count toward your dividend: clothing, gear, shoes, camping equipment, bikes, and most outdoor apparel. However, some purchases are excluded. Gift cards do not earn dividend. Certain services — such as bike repairs, rentals, or classes — may earn a lower dividend rate or none at all. REI's website lists the exact categories and rates when you shop.
Sales tax and shipping fees are not included in the dividend calculation. If you spend $100 on a jacket plus $8 in tax, the dividend is calculated on the $100, not the $108. Similarly, if you return an item, that amount is subtracted from your annual total before the dividend is calculated.
Purchases made with a gift card count toward the dividend, even though the gift card itself does not earn one. This means if someone gives you a $50 REI gift card and you use it to buy a backpack, that $50 counts as your spending for dividend purposes.
Whether REI membership is worth the $20 investment
The answer depends on how much you plan to spend at REI. If you shop there regularly — say, $200 or more per year — the dividend alone will pay back the $20 membership fee within the first year. After that, every dollar spent generates roughly 10 cents in dividend, which is a return most retail loyalty programs do not match.
Even if you spend less than $200 per year, membership may still be worth it if you take advantage of member-only sales and early access to seasonal discounts. These sales often offer 20 to 30 percent off, which can exceed the value of the dividend alone. If you shop at REI only once or twice a year for a single item, the $20 membership fee may not pay for itself in dividend, and you can shop as a non-member without losing anything.
Frequently Asked Questions
Do I have to renew my REI membership every year?
No. The $20 membership fee is a one-time payment. Your membership remains active for life and never expires. You do not pay anything else to keep it active, even if you do not shop at REI for years.
What happens to my dividend if I do not spend anything at REI in a year?
You still receive a small dividend — typically $1 to $2 — straightforward for being a member. This reflects your ownership stake in the co-op. If you spend money at REI, the dividend is calculated as a percentage of that spending.
Can I use my dividend credit on sale items or clearance?
Yes. Your dividend credit works like store credit and can be used on any purchase at REI, including sale and clearance items. There are no restrictions on what you can buy with it.
Does the REI credit card replace the co-op dividend?
No. The credit card rewards and the co-op dividend are separate. As a member using the co-op credit card, you earn both the annual dividend and the card rewards on the same purchase.
What if I move or change my address after joining?
Update your address with REI so your dividend notification and check (if you choose that option) reach you. You can update your address online through your REI account or by contacting REI customer service. Your membership itself is not affected by a move.