Cashback Calc

Cashback Calculator Maximize your rewards: compare cards, estimate annual cashback, and avoid costly mistakes. ...

Cashback Calculator

Maximize your rewards: compare cards, estimate annual cashback, and avoid costly mistakes.

Single Purchase

Annual Spending

Card Comparison

Purchase Amount ($)

Cashback Rate (%)

Card Annual Fee ($)

Groceries ($/yr)

Gas ($/yr)

Dining ($/yr)

Travel ($/yr)

Flat Cashback (%)

Bonus Categories (e.g., 5% on Groceries up to $1,500/quarter) None 5% Groceries (Q1), Gas (Q2), Dining (Q3), Travel (Q4) 6% Groceries (uncapped)

Annual Fee ($)

Card 1 Name

Flat %

Bonus % (cap)

Card 2 Name

Flat %

Bonus % (cap)

Card 3 Name

Flat %

Bonus % (cap)

Enter annual spending (same as above): Groceries: $6,000, Gas: $2,400, etc.

$0

Gross Cashback

$0

Net Cashback
(after annual fee)

0%

Effective Cashback Rate

∞

Fee Payoff Time
(months)

Cashback Breakdown by Category

How Cashback Works

Cashback is a reward where credit card issuers return a percentage of your spending as statement credits, checks, or direct deposits.

Types:

• Flat-rate (e.g., 2% on all purchases) — simple, best for general spenders
• Bonus categories (e.g., 5% on groceries) — higher returns if you match spend
• Rotating quarters (e.g., 5% on gas in Q2) — requires activation & tracking

Important: Cashback is **taxable income** if redeemed as a check or gift card — but not when used as a statement credit (IRS Rev. Rul. 76-273).

Effective Cashback Rate (ECR)

Your Effective Cashback Rate = (Net Cashback ÷ Total Spending) × 100%.

Why it matters:

• A $95 annual fee card needs ~$4,750 in 2% spending just to break even
• A card with 5% on $1,500/quarter ($6K/yr) + 1% elsewhere on $20K spend → ECR = 2.2% *before* fee
• ECR < 1.5%? You’re likely better off with a no-fee 2% card.

Rule of thumb: Only pay an annual fee if ECR ≥ 2.5% and you’ll keep the card 3+ years.

Hidden Pitfalls

• APR traps — Carrying a balance? 20% interest dwarfs 2% cashback.
• Redemption devaluation — Some cards pay 1¢/point as cash, but only 0.8¢ via gift cards.
• Category caps — “5% on groceries” often caps at $1,500/quarter — know the limits!
• Activation deadlines — Miss the quarterly opt-in? You get 1%, not 5%.
• Foreign transaction fees — 3% fee = wipes out 2% cashback abroad.

✅ Always: pay in full monthly, read the Guide to Benefits, and track redemption values.

How to Use This Calculator

➡️ Single Purchase

Quick estimate for one transaction (e.g., $1,200 laptop at 3% = $36 back).

➡️ Annual Spending

Enter yearly spend by category + card details. The calculator applies caps, quarterly rotations, and subtracts fees.

➡️ Card Comparison

See which card wins for *your* spending. Change names/rates to model real cards.

Note: This tool assumes timely payments, no interest, and accurate category tracking.