Cashback Value Calculator

Work out cashback value instantly with clear inputs, formula shown and shareable results.

About Cashback Value Calculator

Cashback is worth having only after the annual fee. Break-even monthly spend is the monthly fee divided by the cashback rate, and monthly caps often bite well before that — a 15 cap at 1.5% means spending above 1,000 a month earns nothing extra.

Formula

Cashback

monthly cashback = min(spend x rate, cap); net benefit = 12 x monthly - annual fee

Worked example

With the default values below, Cashback Value Calculator returns Net annual benefit of $150.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly spending: 1,400
Cashback rate: 1.5 %
Annual card fee: 30
Monthly cashback cap: 15

Results

Net annual benefit: $150.00
Annual cashback earned: $180.00
Monthly cashback: $15.00
Monthly spend to cover the fee: $166.67

Step by step

1Values used
2Cashback
3Net annual benefit= 150.00
4Annual cashback earned= 180.00
5Monthly cashback= 15.00
6Monthly spend to cover the fee= 166.67

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Does cashback justify carrying a balance?

Never. Interest at 20%+ APR dwarfs 1-2% cashback within weeks. Cashback only pays if the balance is cleared each month.

Where do caps usually apply?

Per category, per month or per year. Read which, because a generous headline rate with a tight cap can be worth less than a lower uncapped rate.