Cash Back Calculator

How to Calculate Cash Back Rewards

Cash back credit cards return a percentage of your spending as a reward. This calculator helps you estimate annual and monthly earnings.

The formula

Cash Back = Annual Spending × (Rate ÷ 100)

Step-by-step

1. Enter your estimated annual credit card spending.
2. Enter the cash back rate (common rates: 1%, 1.5%, 2%, 3%).
3. The calculator shows annual and monthly cash back.

Worked example

$24,000 annual spending at 2% cash back: Annual reward = $24,000 × 0.02 = $480. Monthly average = $40.

Tips for maximizing rewards

Flat 2% cards are simple and consistent. Tiered cards (3% dining, 5% gas, 1% everything else) can earn more if your spending aligns with bonus categories. Always pay the balance in full — interest charges will wipe out any cash back earned. Annual fees should be less than your expected reward.