Finance · Credit cards

Cash Back Calculator

Add a row for each spending category, with its monthly spend and reward rate, to estimate how much cash back you would earn in a year.

Methodology reviewed Jul 14, 20262 primary sourcesHow it worksInputs stay on this device
Your inputs

Enter your spending

Your inputs are calculated locally and are not stored.
Estimated yearly cash back$276.00

Across 2 spending categories.

Monthly cash back
$23.00
Annual cash back
$276.00
Formula & methodology

How cash back is calculated

Each category earns its monthly spend multiplied by its reward rate. Adding those up gives the monthly cash back, and multiplying by twelve gives the annual total. Separate categories let you model a tiered rewards card that pays more on some kinds of spending than others.

Monthly cash back = Σ(Monthly spend × Reward rate %)
Annual cash back = Monthly cash back × 12
Monthly spend
What you spend in a category each month
Reward rate %
The cash back rate for that category
Worked example

$500 groceries at 3%, $800 on everything else at 1%

Two categories: $500 a month on groceries at a 3% reward rate, and $800 a month on everything else at 1%. Groceries earn $15.00 a month and everything else earns $8.00, for $23.00 in monthly cash back and $276.00 over the year.

Categories and resulting cash back
CategoryMonthly spendReward rateMonthly cash back
Groceries$500.003%$15.00
Everything else$800.001%$8.00
Total$1,300.00$23.00
Assumptions

What this calculator assumes

  • Monthly spend is steady across the year; multiply seasonal spend by its own months if it varies.
  • Reward rates are flat per category — spending caps, rotating categories, and sign-up bonuses are not modeled.
  • Annual fees, foreign transaction fees, and interest charges are not subtracted from the cash back.
  • Rewards are treated as cash; point valuations may differ on a points-based card.
  • Money values are rounded to the nearest cent for display.
Common questions

Cash back FAQ

How do I handle a flat-rate card?

For a card that pays the same rate on everything, use a single category with your total monthly spend and that one reward rate. Add more categories only when different kinds of spending earn different rates.

Does this account for an annual fee?

No. The result is gross cash back before any annual fee. To judge a card with a fee, subtract the fee from the annual cash back this calculator shows to see the net benefit.

Primary sources

Sources and review notes

  1. Consumer Financial Protection Bureau — credit card rewards
  2. Financial Consumer Agency of Canada — credit card rewards

Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.