Enter the % cashback of your card and the total purchase amount into the calculator. The calculator will determine the total amount of cashback earned.

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

  1. First, determine the rate of cash back of the card.

    This rate is typically shown as a % of a total purchase amount.

  2. Next, determine the total purchase amount

    Typically this purchase amount is the total purchase including taxes.

  3. Finally, calculate the cash back amount

    Using the formula above, the percentage, and total purchase price, calculate the cash back earned on a purchase.


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.