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 * 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

  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.

FAQ

What is cash back?

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%.

Is there a limit to cash back?

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.

cash back calculator
cash back formula