💵 Cash Back Calculator
Calculate cash back rewards and effective price
Common rates: 1-5% for credit cards, 2-10% for apps
How to Use This Calculator
Enter Purchase Amount
Input the total purchase amount you plan to make or have made.
Enter Cash Back Rate
Enter the cash back rate percentage offered by your credit card, cash back app, or rewards program.
Review Cash Back Earned
See how much cash back you'll earn and the effective price after cash back. Use this to compare different cash back offers and maximize your rewards.
Formula
Cash Back = Purchase Amount × (Cash Back Rate / 100)
Effective Price = Purchase Amount - Cash Back
Example Calculation:
If purchase $1,000, cash back rate 2%:
• Cash back = $1,000 × 2% = $20
• Effective price = $1,000 - $20 = $980
About Cash Back Calculator
A cash back calculator helps you calculate cash back rewards and the effective purchase price after cash back. Cash back programs offer a percentage of your purchase amount back as rewards, typically through credit cards, cash back apps, or retailer rewards programs. This calculator helps you determine how much cash back you'll earn and the true cost of your purchase after cash back, making it easier to compare different cash back offers and maximize your rewards.
When to Use This Calculator
- Rewards Planning: Calculate cash back earnings for purchases
- Offer Comparison: Compare different cash back offers and credit cards
- Effective Pricing: See the true cost after cash back
- Rewards Maximization: Plan purchases to maximize cash back
Understanding Cash Back
- Credit Cards: Typically offer 1-5% cash back on purchases
- Cash Back Apps: May offer 2-10% cash back at specific retailers
- Category Bonuses: Some cards offer higher rates for specific categories
- Redemption: Cash back is typically redeemed as statement credit, check, or account deposit
Why Use Our Calculator?
- ✅ Rewards Calculation: Instantly calculate cash back earnings
- ✅ Effective Pricing: See true cost after cash back
- ✅ Offer Comparison: Compare different cash back offers
- ✅ Rewards Planning: Plan purchases to maximize rewards
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is cash back?
Cash back is a rewards program where you receive a percentage of your purchase amount back as cash or credit. Cash back is typically offered by credit cards, cash back apps, or retailer rewards programs. For example, a 2% cash back credit card gives you $2 back for every $100 you spend. Cash back can be redeemed as statement credit, check, or account deposit, depending on the program.
How does cash back work?
Cash back works by earning a percentage of your purchase amount back as rewards. When you make a purchase using a cash back credit card or through a cash back app, you earn cash back based on the purchase amount and cash back rate. The cash back is typically credited to your account after the purchase posts and can be redeemed once it's available. Some programs offer instant cash back, while others may have minimum redemption thresholds.
What's a good cash back rate?
A good cash back rate depends on your spending habits and the type of purchases you make. General cash back cards typically offer 1-2% on all purchases, while category-specific cards may offer 3-5% on certain categories (like groceries, gas, or dining). Cash back apps may offer 2-10% at specific retailers. Consider your spending patterns and choose cards or programs that offer the highest rates on your most frequent purchases.
Is cash back taxable?
Cash back from credit cards and rewards programs is generally not taxable income in the U.S. because it's considered a discount or rebate on purchases, not income. However, cash back from certain business activities or sign-up bonuses may have tax implications. Consult a tax professional for advice on your specific situation. The IRS generally treats credit card rewards as discounts, not taxable income.