Compare the value of cash back versus credit card points.
Cash back is spend times the rate, while points value depends on how many points are earned and how each is redeemed. Rewards cards differ wildly in redemption value, so a direct comparison shows which program actually pays you more.
Cashback vs Points
Cash back = spend x rate; points value = spend x points/$ x value/point
Cash back = spend x rate; points value = spend x points/$ x value/point Cash back is spend times the rate, while points value depends on how many points are earned and how each is redeemed.
Rewards cards differ wildly in redemption value, so a direct comparison shows which program actually pays you more.
This calculator takes 4 inputs: Monthly spend, Cash back, Points per dollar, Value per point. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.