Want to know how much you can save with Cash Back rewards? Our Cash-Back Calculator helps you estimate the return on your purchases based on the Cash Back rate provided by your card or retailer.
Simply enter your purchase amount and Cash Back percentage to see your potential savings instantly.
Cash Back Calculator
Calculate the cash back you earn from purchases based on a specified cashback rate.
How Cash Back is Calculated
Cash Back is a simple yet powerful way to save money on your purchases. The calculation involves multiplying the purchase amount by the Cash Back percentage offered by your card or retailer.
For instance, if you spend $200 and receive a Cash Back rate of 5%, your savings would be $10. This amount is either credited back to your account or added to your rewards balance, depending on the terms of your Cash Back program.
The formula for calculating Cash Back is: \(\text{Cashback} = \text{Purchase Amount} \times \left( \frac{\text{Cashback Percentage}}{100} \right)\)
By using this formula, you can quickly estimate the value of your Cash Back rewards before making a purchase.
Definition: What is Cash Back?
Cash Back is a type of incentive offered by credit card companies, online retailers, or financial institutions to encourage spending.
When you make a qualifying purchase, a percentage of the amount is returned to you as a reward, typically in cash, points, or account credits.
Cash Back rates vary depending on the program, purchase category, or promotional offers, allowing savvy shoppers to earn rewards on everyday expenses or specific purchases.
More Calculators: