How do I use this calculator?
The basic portion of this calculator allows you to calculate any of the variables shown directly above.
Calculator Operations:
- Enter the purchase amount and cash back percentage to calculate the total cash back.
- Enter the purchase amount and total cash back to calculate the cash back percentage.
- Enter the cash back percentage and total cash back to calculate the purchase amount.
The advanced version of this calculator allows you to input two different purchase amounts and their respective cash back percentages, along with an additional bonus cash back percentage, to calculate the total cash back.
Use the calculate button when all known values have been entered and use the reset button when you want to clear the values from the calculator.
Enter the % cashback of your card and the total purchase amount into the calculator. The calculator will determine the total amount of cashback earned.
- Double Discount Calculator
- Daily Interest Rate Calculator
- Stock Calculator
- Cash on Cash Return Calculator
- Unpaid Balance Calculator
Cash Back Formula
The following formula is used to calculate the cashback earned using a given credit card and purchase amount.
C = P * CP/100
- Where C is the total amount of cash back
- P is the total purchase amount
- CP is the cashback percentage earned while using the card.
To calculate the cash back, simply multiply the total purchase amount by the cash back percentage, then divide by 100.
Cash Back Definition
Cashback is defined as the total currency a person receives back from the purchase of a good or service due to some benefit on a credit card on the program.
Cash Back Example
How to calculate cash back
- First, determine the rate of cash back of the card.
This rate is typically shown as a % of a total purchase amount.
- Next, determine the total purchase amount
Typically this purchase amount is the total purchase including taxes.
- Finally, calculate the cash back amount
Using the formula above, the percentage, and total purchase price, calculate the cash back earned on a purchase.
FAQ
How does the cashback percentage affect my savings?
The higher the cashback percentage, the more money you get back from your purchases. For example, a 2% cashback rate will give you $2 back for every $100 spent, while a 5% rate will give you $5 back for the same amount.
Can I use cashback rewards for any purchase?
Generally, yes. Once you’ve earned cashback, you can use it towards future purchases, pay down your credit card balance, or even have it deposited into your bank account, depending on your credit card’s policy.
Are there different types of cashback rewards?
Yes, some credit cards offer flat-rate cashback 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 cashback categories quarterly.
Do cashback rewards expire?
This depends on the credit card company’s policy. Some cashback 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 to understand the expiration policy of your rewards.
