Cashback Calculator
Calculate the real value of cashback and rewards cards after annual fees are deducted.
Last updated · View algorithm, constants and default inputs (JSON)
About this calculator
Compare annual rewards after fees and test a one-time bonus against its required spend and qualification period. Check the issuer’s current offer terms.
Worked example
calculated with the default values below
Monthly spending on the card 1,200 $ · Cashback rate 2 % · Annual card fee 95 $ · Sign-up bonus 200 $ · Spend required for the bonus 3,000 $ · Bonus qualification period 3 months · Higher rate on one category 3 % · Monthly spend in that category (included in total) 300 $ · Years to compare 3 years Cashback per year 324.00 $ · Sign-up bonus value 200.00 $ · Net value per year 229.00 $ · Total net value 887.00 $ · Recurring return on spending (bonus excluded) 1.59 % · Note You meet the minimum spend for the sign-up bonus
General background references
Disclaimer
These calculators give general estimates. Sizing, pricing, availability and standards vary by brand, retailer and country, so treat the output as a starting point and confirm it against the seller's or authority's own figures.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
Net = 12 × [(S − S_c)·r ÷ 100 + S_c·r_c ÷ 100] − F
- Net
- Net cashback per year
- S
- Total monthly spend
- S_c
- Bonus-category monthly spend
- r
- Base cashback rate (%)
- r_c
- Bonus-category rate (%)
- F
- Annual card fee
Annual reward uses monthly base and category spend × 12 × reward rates. The one-time bonus qualifies when monthly spend × qualification months ≥ required spend; annual fee is subtracted each model year.
Frequently asked questions
What assumptions affect the cashback comparison?
Category spending is treated as part of, not additional to, total monthly card spending, so the calculator rejects category spend above the total. Recurring net value deducts the annual fee each modeled year; the one-time bonus is added once when the entered spend threshold is met. Effective return excludes that bonus. Issuer caps, exclusions, bonus terms and fee waivers are not modeled; check the current offer.