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Cashback Rewards Calculator
Estimate how much cashback you earn across your spending categories, subtract any annual fee, and see your net rewards. Enter your numbers and press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
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How the cashback calculator works
Reward cards often pay different rates by category, such as more on groceries or dining and a flat rate on everything else. This tool multiplies your monthly spend in each category by its rate, adds the results, and scales to a yearly figure. It then subtracts any annual fee to show what you actually keep.
The effective rate is the most useful number for comparing cards. It blends all your categories into a single percentage, so you can see past flashy headline rates and judge a card by how it fits your real spending.
A quick example
Say you spend $600 on groceries at 3%, $300 on dining at 4%, $200 on travel at 2% and $800 on everything else at 1%. That is about $42 a month, or $504 a year. After a $95 annual fee, your net cashback is $409 and your effective rate is roughly 1.9%.
Things to keep in mind
Cashback only pays off if you avoid interest by paying the balance in full each month. Carrying a balance at typical card rates wipes out any rewards. For card basics, the Consumer Financial Protection Bureau is a reliable source. Compare options with our other free calculators.
Frequently asked questions
How is cashback calculated?
Cashback is your spending in a category multiplied by that category's reward rate. For example, $600 of groceries at a 3% rate earns $18. Add the cashback from every category to get your total, then subtract any annual fee to find your net rewards.
What is an effective cashback rate?
The effective rate is your total cashback divided by your total spending. A card may advertise high rates in a few categories, but if most of your spending earns only 1%, your real, blended rate is lower. This tool shows that blended rate.
Is a card with an annual fee worth it?
It depends on whether the extra rewards beat the fee. If a $95 fee card earns you $300 in cashback and a free card would earn $150, the fee card still nets $205 versus $150. This calculator subtracts the fee so you can compare net rewards directly.
Does cashback count as taxable income?
For most personal credit cards, cashback earned on purchases is treated as a rebate, not taxable income, by the IRS. Rewards earned for opening an account without spending can be different. Check current guidance or a tax professional for your situation.
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