Cashback Calculator

Work out the cashback or reward value a purchase earns, including caps and points value.

Purchase amount	$200
Cashback / reward rate	2 %
Cashback cap (optional)	$0
Value per point (if earning points)	1

Purchase amount

Cashback / reward rate

Cashback cap (optional)

Value per point (if earning points)

Leave 1 for cash. For points, enter the value of one point.

You earn

$4.00

2% back on $200.00. Effective price: $196.00.

Effective discount: 2%

What the purchase really costs

Purchase$200
Cashback−$4
Effective price$196

About the Cashback Calculator

Enter the purchase amount, the cashback or reward rate, any cap on the reward, and what each point is worth if you earn points. The calculator gives the reward, the effective discount and the price you really paid.

Cashback is a percentage of what you spend, often with a monthly cap. For points programmes, multiply the points by what each is worth when redeemed. Paying interest on a card wipes out any reward.

The formula

Cashback = spend × rate (up to the cap)

Worked example

200 at 2% cashback

200 × 2% = 4.00, so the effective price is 196.00
A 20,000 purchase at 5% with a 500 cap
5% would be 1,000, but the cap gives 500: an effective 2.5%

Questions people ask

Is cashback taxable?

In most countries card cashback on purchases is treated as a rebate, not income; check local rules.

Is 2% cashback good?

Flat 1.5–2% on everything is typical of strong no-fee cards.

How much is a point worth?

Divide the cash value of a redemption by the points it costs: 10,000 points for 50 means 0.005 a point.