Cash Back Calculator
Enter the cash back percentage of your credit card and the total purchase amount to calculate your cash back rewards and net cost after receiving the money back.
Cash Back Formula
The cash back calculation uses the following formula:
Net Cost = Purchase Amount - Cash Back
How to Use This Calculator
- Enter Purchase Amount: Input the total amount of your purchase including taxes.
- Enter Cash Back Rate: Input the cash back percentage offered by your credit card (e.g., 1.5, 2, 5).
- Click Calculate: The calculator will show your cash back earnings and net cost.
Understanding Cash Back
Cash back is a reward program offered by credit cards where you receive a percentage of your purchase amount back as a reward. The higher the cash back percentage, the more money you get back from your purchases.
Cash Back Examples
- 1% Cash Back: On a $100 purchase, you earn $1.00 back
- 2% Cash Back: On a $100 purchase, you earn $2.00 back
- 5% Cash Back: On a $100 purchase, you earn $5.00 back
Frequently Asked Questions
How does the cash back percentage affect my savings?
The higher the cash back percentage, the more money you get back from your purchases. For example, a 2% cash back rate will give you $2 back for every $100 spent, while a 5% rate will give you $5 back for the same amount.
Are there different types of cash back rewards?
Yes, some credit cards offer flat-rate cash back rewards on all purchases, while others offer higher rates on specific categories like groceries, gas, or dining out. There are also cards that rotate these higher cash back categories quarterly.
Do cash back rewards expire?
This depends on the credit card company's policy. Some cash back rewards may expire if not used within a certain period, while others may not expire at all. It's important to read your credit card's terms and conditions.