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Cash Back Calculator

Spending $600 on groceries at 3%, $200 on gas at 2%, and $1,200 everywhere else at 1% earns $34 in monthly cash back. This cash back calculator estimates rewards from one card across one or more spending categories. Enter your spend and each reward rate to see total cash back, your blended reward rate, and what that pace looks like over a full year.

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Quick answer

Cash back for each category equals spending x cash-back rate.

Category 1

Category 2

Category 3

Enter spending for the period you selected above. This estimate does not include spending caps, rotating-category activation, annual fees, balance interest, or point redemptions at different values.

What this tells you

  • Cash back for each category equals spending x cash-back rate.
  • Total cash back equals the sum of all category rewards.
  • Your effective cash-back rate equals total cash back divided by total spend.
  • If you enter monthly spending, the calculator also annualizes the result by multiplying by 12.

How to Use

  1. 1Choose whether your spending amounts are monthly or annual.
  2. 2Enter a spending amount and cash-back rate for each category you want to include.
  3. 3Add another row if your card pays different rates in more than three categories.
  4. 4Calculate to see total cash back, your blended reward rate, and the annual or monthly equivalent.

How It Works

Formula

Cash back by category = spending x (cash-back rate ÷ 100) Total cash back = sum of category cash back Effective cash-back rate = (total cash back ÷ total spend) x 100 Annualized cash back from monthly spending = monthly cash back x 12

The calculator works category by category. It converts each percentage into a decimal, multiplies that rate by the spending in that category, and adds the reward dollars together. It then divides total rewards by total spend to show the blended rate you actually earned across all categories, not just the headline rate on one part of your spending.

Calculation note: values are processed in the order shown above, using the current input units.

Worked Examples

Three-category monthly rewards mix

Groceries$600 at 3%
Gas$200 at 2%
Everything else$1,200 at 1%
Result$34 monthly cash back and a 1.70% blended reward rate

Groceries earn $18, gas earns $4, and everything else earns $12. That adds up to $34 on $2,000 of spend. Over 12 similar months, that pace would equal $408 in annual cash back.

Flat 2% card on annual spend

Spend$24,000 per year
Rate2% cash back
Result$480 annual cash back and $40 per month on average

A flat-rate card is simple because every dollar earns the same rate. Multiply $24,000 by 0.02 to get $480 for the year, which works out to $40 per month on average.

What common cash-back rates earn on $1,000 of spend

Quick reward estimates for one spending category before any caps, fees, or point-value adjustments.

Cash-back rateCash back on $1,000Cash back on $2,500
1%$10$25
1.5%$15$37.50
2%$20$50
3%$30$75
5%$50$125

The dollar reward scales in a straight line as long as the full spend qualifies for that rate.

Common mistakes

  • Using one average reward rate when your card actually pays different percentages by category
  • Counting the full category spend at 5% when the card has a quarterly or annual spending cap
  • Comparing reward dollars without subtracting annual fees or checking whether interest charges wipe them out

Frequently Asked Questions

Multiply the spending amount by the cash-back rate as a decimal. For example, $1,500 at 2% earns $30 because 1,500 x 0.02 = 30.
An effective cash-back rate is your blended reward rate across all spending. It equals total cash back divided by total spend, so it shows what you really earned after mixing 1%, 2%, 3%, or other categories together.
Yes, but only as a manual estimate. Split capped or rotating categories into separate rows and enter only the spending that actually qualifies for each rate.
Yes, if you are judging the card's net value. This calculator shows gross cash back before annual fees, interest, and redemption friction.
Real cash back can be lower when a purchase codes outside the expected category, a reward cap cuts the rate, or you redeem points at less than a penny per point. Some issuers also exclude certain transactions from rewards.
It estimates cash back calculator outputs using the visible inputs and formula assumptions on this page.

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