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Certain brands and purchases allow you to get a reward in the form of cash back, this often applies to purchases made to certain credit cards.
The amount of money you get back depends on the card itself and the percentage you get back per purchase. If you know your plan's percent, use our calculator to find out how much cash back you should be getting.
Cash back calculations require the amount purchased and the percent back you should be getting. The formula is Cash Back = Purchase Amount * (Cash Back Percent / 100).
You divide the cash back percent by 100 to get it in its decimal form, which can be used in formulas to accurately generate your results.
In terms of cash back on credit cards, roughly 2% back is good depending on your spending habits and possible exclusions of the deal being offered to you.
Often times there will be different percentages of cash back depending on what is being purchased. Some credit cards may give you back 2% on travel-related purchases like plane tickets but only give you 1% back on purchases related to restaurants.
It is possible that cash back credit cards have higher-than-usual APR, potentially very long wait time until you can access your cash back money, and the possible cap on how much you can earn back every year.
Create Date: July 11, 2024
Last Modified Date: July 11, 2024
