Enter the % cashback of your card and the total purchase amount into the calculator. The calculator will determine the total amount of cashback earned.
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Cash Back Formula
The following formula is used to calculate the cashback earned using a given credit card and purchase amount.
C = P * C%/100
- Where C is the total amount cash back
- P is the total purchase amount
- C% is the cashback % earned while using the card.
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
- First, determine the rate of cash back of the card.
This rate is typically shown as a % of a total purchase amount.
- Next, determine the total purchase amount
Typically this purchase amount is the total purchase including taxes.
- Finally, calculate the cash back amount
Using the formula above, the percentage, and total purchase price, calculate the cash back earned on a purchase.
FAQ
Cashback is a term used in finance to describe a reward earned from using a companies financial device. This is most often through the use of a credit card. The amount of cashback earned is determined when signing the credit card agreement. These can range from anywhere between 1% and 5%.
On some credit cards, there is a limit to how much cashback can be earned on a given purchase or given time period. Other times, the cashback is unlimited.
