How this calculator works
Multiply eligible spending by the reward percentage, then restrict the result to the remaining cap if one applies. Enter only spending that qualifies for this reward tier. Use the cap still available in the same statement period or year. The net spending figure subtracts the reward; interest, card fees, taxes and redemption delays are excluded.
Formula
Uncapped reward = eligible spending x cash back fraction. Earned reward = min(uncapped reward, remaining cap). Effective rate = earned reward / spending, or 0 when spending is 0.
Worked example
$1,000 of eligible purchases at 2% earns $20 with no cap. If only $15 remains under the cap, the reward is $15 and the effective rate is 1.5%.
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Frequently asked questions
Is the cap a spending cap or reward cap?
Enter a maximum reward amount. If your issuer caps eligible spending instead, multiply the remaining spending allowance by the reward rate first.
Can I combine reward categories?
Calculate each tier separately using its own qualifying spending, rate and remaining cap, then add the resulting rewards.
Does cash back cancel borrowing costs?
Cash back reduces purchase cost in this calculation. A carried balance can incur interest that exceeds the reward; those costs are separate.