Cashback vs Points
Compare the value of cash back versus credit card points.
About Cashback vs 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.
Formula
Cashback vs Points
Cash back = spend x rate; points value = spend x points/$ x value/point
- value per point
- Cents each point is worth when redeemed
Worked example
With the default values below, Cashback vs Points returns Cash Back Value of $7.50. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Monthly spendminimum 0
- 500
- Cash backaccepts 0–100 %
- 1.5 %
- Points per dollarminimum 0
- 2
- Value per pointminimum 0 c
- 0.5 c
Results
- Cash Back Value
- $7.50
- Points Earned
- 1,000
- Points Value
- $5.00
- Better Rewards
- Cash back
Step by step
- 1Values used
- 2Cashback vs Points
- 3Cash Back Value= 7.50
- 4Points Earned= 1,000
- 5Points Value= 5.00
- 6Better Rewards= Cash back
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Cashback vs Points calculated?
Cash back = spend x rate; points value = spend x points/$ 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.
Why does Cashback vs Points matter?
Rewards cards differ wildly in redemption value, so a direct comparison shows which program actually pays you more.
What values do I need to enter?
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.