Calculate cashback percentage, earnings, effective rate, and card break-even spend from purchase amounts, rates, fees, and bonuses.
Cashback Percentage Formula
Select cashback percentage, earned rewards, or purchase amount and enter the other two values. Purchases must be positive; zero rate cannot uniquely infer purchases. The formula below applies to matching eligible purchase and reward amounts.
Variables:
- CB% is the cashback percentage
- CE is the cashback earned ($)
- PA is the purchase amount ($)
Cashback percentage = cashback earned / eligible purchase amount × 100. By-category mode uses separate annual spend caps and a 1% over-cap rate when that value is blank. Net-price mode applies tax after discounts and estimates cashback on the full checkout total, including fees; actual eligibility and tax rules vary. Card comparison uses constant rates, the incremental annual fee, and an eligible first-year bonus, excluding interest and caps.
What is Cashback?
Cashback refers to a credit card benefit that refunds the cardholder a small percentage of the amount spent on purchases. Cashback rewards are actual cash that can be applied to a credit card bill or received as a check or bank account deposit. It's a way to earn back some of the money you spend.
How to Calculate Cashback Percentage?
The following steps outline how to calculate the Cashback Percentage.
- First, determine the purchase amount (PA) in dollars.
- Next, determine the cashback earned (CE) in dollars.
- Use the formula from above = CB% = (CE / PA) * 100.
- Finally, calculate the Cashback Percentage (CB%).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Purchase Amount (PA) = $200
Cashback Earned (CE) = $10. Cashback percentage = ($10 / $200) × 100 = 5%.
