Cash back calculator helps you figure out how much money you can get back as a reward due to any credit card policy, based on a percentage of what you have spent. You can keep track of your savings by managing your finances with it.
Steps to Use Cash Back Calculator:
We have made this cash back credit card calculator quite simple and easy to use. It requires a few inputs to calculate accurate results. These include:
What to Enter?
- Insert the values: Enter the values into their field accordingly, such as:
- Total Purchase Amount
- Cash Back Percentage
What will you Get?
- Results: Total cashback amount along with step-by-step calculations
Formula to Calculate Cash Back:
Here is the basic formula that our shopping percentage calculator uses while functioning, such as:
C = A x P
- C – Cash Back Amount
- A – Total Amount Spent
- P – Cach Back Percentage
How to Calculate Cash Back?
The best way to calculate the cashback amount is using our free cash back calculator. But if your goal comes up with the manual calculations, stick to the following example to broaden your concept.
Suppose you decide to buy a new pair of shoes that cost $100, and the cashback percentage offered by your credit card is 5%.
Using the formula, you can calculate your cashback as follows:
Cashback = Amount Spent x Cashback Percentage
Data we have:
- Amount Spent: $100
- Cashback Percentage: 5%
Now, apply the formula:
Cashback = $100 (Amount Spent) x 5% (Cashback Percentage)
Now, let's calculate it step by step:
Cashback = $100 x 5%
To calculate 5% of $100, you can convert the percentage to a decimal by dividing it by 100:
5% = 5/100 = 0.05
Cashback = $100 x 0.05
Now, multiply $100 by 0.05:
Cashback = $5
In this example, you would receive a $5 discount as cashback for buying a pair of shoes that cost you $100. You can also use our cash back calculator to determine your total cashback.
How do I Redeem My Cashback?
There are a few different ways to redeem your cashback, depending on the program you're using. Here are the most common methods:
- Statement credit: This is the most common way to redeem cashback. You can apply your cashback as a credit to your credit card statement, which will reduce your balance.
- Cash: You can also redeem your cashback for cash. Some programs will send you a check, while others will allow you to withdraw your cashback from an ATM.
- Gift cards: You can also redeem your cashback for gift cards to your favorite stores. This is a great way to save money on things you already buy.
- Travel rewards: Some cashback programs allow you to redeem your cashback for travel rewards, such as flights, hotels, and rental cars. This is a great way to save money on your next vacation.
- Charitable Donations: Some credit cards let you donate your cashback to a charity of your choice.
To redeem your cashback, you'll need to log in to your account on the cashback program's website or app. From there, you'll be able to choose your preferred redemption method and follow the instructions.
Is there a Limit to Cash Back?
Some cashback programs have limits on the amount of cashback you can earn each month or year. Be sure to check the terms and conditions of the program you use to see if there are any limits.
Why do Companies Provide Cashback?
Companies provide cashback for a variety of reasons, including:
- To attract and retain customers
- To increase sales
- To build customer loyalty
- To collect customer data
Overall, cashback is a win-win for both companies and consumers. Companies benefit from increased sales, customer loyalty, and valuable customer data. Consumers benefit from the opportunity to earn money back on their purchases.
Is there any fee associated with cashback programs?
Yes, some cashback programs have fees associated with them, such as:
- Annual fees
- Monthly fees
- Transaction fees
However, there are also many cashback programs that have no fees associated with them. Before you sign up for any program, compare different offers to ensure you're getting the best deal.
Forbes.com: What Is Cash Back? How Does Cash Back Work? How Cash Back Is Awarded