Can a $65 Costco Membership Pay for Itself on Everyday Groceries? We Did the Math

Costco's fame comes from its bulk bargains, but have you ever wondered if those savings outweigh the $65 annual membership fee? There are many Costco membership perks, from designer goods at affordable prices to the high quality of Kirkland Signature items, but what about the bare bones?

To find out, we compared everyday essentials at Costco and Target. The results may surprise you.

Editor's note: Prices and availability are subject to change and may vary by location.

Eggs

Costco: $1.98 per dozen

Target: $2.99 per dozen

Let's start with a breakfast staple, and a big win for Costco members. Per dozen, eggs are nearly a dollar cheaper at Costco than at Target. If you're an avid baker, that difference adds up before you know it.

Milk

Costco: $3.05 per gallon

Target: $3.69 per gallon

Costco comes ahead when it comes to milk. Though unless you're buying in bulk for a large household or sharing with family, you may save more on perishable items like milk by sticking with your local Target.

Toilet paper

Costco: $1.13 per roll

Target: $1.49 per roll

Essentials like toilet paper, tissue, and paper towels are some of Costco's most sought-after bargains. At $1.13 cents per roll, Costco's offering beats Target's Charmin Ultra Strong toilet paper by 70 cents, which is quite a margin. Depending on how much toilet paper you use, in the long run, you could be saving nearly 40% on a non-negotiable.

For even more savings, you can opt for Costco's store brand. The Kirkland Signature Bath Tissue will run you even cheaper at 79 cents per roll.

Paper towels

Costco: $1.93 per roll

Target: $2.12 per roll

Similar to toilet paper, Costco also comes ahead when it comes to paper towels. Its price per roll is almost a dollar less than Target's.

If you consider how many paper towel rolls you use in a year, you'll easily see that the savings can cover part of your Costco membership cost.

Bread

Costco: $3.06

Target: $3.69

For this article, we compared a loaf of Nature's Own Whole Wheat Bread. Costco wins again, with a price that's about 17% cheaper than Target's pantry essential.

A popular brand like Nature's Own is worth the savings. Besides, bread freezes well, so buying larger loaves is a good reason to shop at Costco.

Rice

Costco: $1.12 per pound

Target: $1.89 per pound

Even if you don't go through a lot of rice regularly, it's an easy-to-store source of healthy carbs and a quick snack or meal.

With Costco selling a 25-pound bag over a dollar cheaper per pound than Target, it's easy to see where your savings are coming from in the long term.

Cooking oil

Costco: 8 cents per fl ounce

Target: 7 cents per fl ounce

Unlike rice, cooking oil can go rancid relatively quickly. Here's a great instance of where buying in bulk isn't better, and Target takes the lead with a three-cent saving.

Unless you're using cooking oil daily, you'll be better off buying smaller bottles from Target. Doing so will also prevent waste.

Soap

Costco: 97 cents per bar

Target: $1.62 per bar

For the sake of transparency, here we compared Costco's 15-bar Kirkland Signature shea butter soap with eight bars of Target's Dove Beauty Shea Butter Bar Soap. We could have picked a cheaper soap, but we wanted to ensure the ingredients were comparable, ensuring the most similar comparison possible.

Here, too, Costco wins the first spot, especially by offering a larger pack that is likely to last close to a year in a smaller household.

Toothpaste

Costco: $3.19 per tube

Target: $4.49 per tube

Costco shines here, too. With more than one dollar in savings on Crest Pro Health Advanced toothpaste and five packs per package, it'll let you save in spades.

Moreover, toothpaste doesn't expire quickly, so it makes sense to buy multi-packs in bulk to save even more.

Frozen vegetable mix

Costco: 14 cents per ounce

Target: 11 cents per ounce

We looked at store-brand broccoli-cauliflower blends for both retailers, and Target takes the crown at 11 ounces, versus 14 ounces at Costco. Though with a Costco membership, you get the convenience of tossing a bag or two in your cart and skipping an extra trip.

Laundry detergent

Costco: 12 cents per load

Target: 15 cents per load

Laundry detergent can be a drain on the budget, but it's one product that a Costco membership can help with. At 12 cents per load, it's slightly cheaper than Target's store-brand soap.

Apples

Costco: $3.26 per pound

Target: $3.68 per pound

As fruit is an everyday essential, we decided to compare the price of in-season apples — the Honeycrisp variety — between these two stores.

Costco offers a roughly 11% discount on these delicious treats, and the quality of its produce often exceeds supermarket standards.

Trash bags

Costco: 11 cents per bag

Target: 17 cents per count

At 11 cents per bag, Costco offers you almost half of Target's price. Regardless of how often you use your membership to shop, this is one of the best buys for your household, especially since trash bags don't expire.

Bottom line

As it turns out, the perks of shopping with a membership aren't as cut and dry as you may have thought. For bulk shoppers and large families, Costco's prices can easily cover the membership cost within a few short months.

However, if you'd rather save more on groceries in smaller quantities or you like to shop more frequently, Target's flexibility, smaller packages, and frequent promotions may save you more in the long term. It's entirely up to you and your budget.