Cash Back Calculator
Calculate credit card cash back rewards based on your spending. Compare category cards vs flat rate and maximize your rewards.
Cash Back Summary
Monthly Cash Back
$55
2.50% effective rate
Annual Cash Back
$660
No annual fee
Monthly Spending by Category
Card Details
Cash Back Breakdown
Category Breakdown
| Category | Monthly Spend | Rate | Monthly Cash Back | Annual Cash Back |
|---|---|---|---|---|
| Groceries | $600 | 3% | $18 | $216 |
| Gas | $200 | 3% | $6 | $72 |
| Dining | $300 | 4% | $12 | $144 |
| Travel | $200 | 5% | $10 | $120 |
| Online Shopping | $400 | 1% | $4 | $48 |
| Other | $500 | 1% | $5 | $60 |
| Total | $2,200 | 2.50% | $55 | $660 |
First Year Value
Category Card vs 1.5% Flat Rate
Category Card
$55/mo
2.50% effective
1.5% Flat Rate
$33/mo
1.5% on everything
Category card earns $22/month more ($264/year)
Quick Answer
To calculate cash back rewards, multiply your spending in each category by the card cash back rate. For example, 500 groceries at 3% = 15 cash back. Use our calculator at practicalwebtools.com to compare multiple cards and maximize your rewards.
Key Facts
- Average cash back rates: 1-2% on all purchases, 3-5% on categories
- Rotating category cards offer 5% but require activation
- Flat-rate cards are simpler but may earn less for category spending
- Annual fees may be offset by higher rewards
- Sign-up bonuses can be worth 150-500+
- Consider redemption options: statement credit, direct deposit, gift cards
Adjust Dining Spending
See how changing dining spending affects your total cash back rewards
Personalized Insights
3 insights based on your inputs
Good News
Your category card earns $264 more per year than a 1.5% flat rate card
Good News
Excellent! Your 2.50% effective rate beats most premium cards
Good News
You'll earn the $200 sign-up bonus with your current spending
Related Calculators
Explore other tools that might help
Frequently Asked Questions
Cash back is a rewards program where you earn a percentage of your purchases back as cash. For example, 2% cash back on $100 gives you $2 back. Cash back can be redeemed as statement credits, direct deposits, or checks. It's essentially a discount on everything you buy.
Flat rate cards (1.5-2%) are simpler and good for general spending. Category cards (3-6% on specific purchases) reward more if your spending aligns with bonus categories. Calculate your spending patterns - category cards can outperform if you maximize bonus categories.
Divide the annual fee by your rewards rate to find break-even spending. For a $95 fee with 2% cash back, you need $4,750/year in spending to break even. Factor in perks (travel credits, insurance) when evaluating. Many premium cards offer value beyond cash back.
Most major card issuers don't expire cash back rewards as long as your account is open and in good standing. However, some store cards or promotional offers may have expiration dates. Always check your card's terms.
Yes! Maximize savings by stacking: use cash back card + coupons + store sales + cash back portals (like Rakuten). Some cards offer rotating 5% categories. You can also use the right card for each purchase type to optimize category bonuses.
Cash Back Summary
Monthly Cash Back
$55
2.50% effective rate
Annual Cash Back
$660
No annual fee