Cashback Calculator
Enter your monthly spend, the cashback rate, any monthly cap and any yearly fee. You get your cashback a month and a year, and the spend needed to cover the fee.
Check the terms: some cashback only applies to certain shops, or pays out as vouchers.
Worked examples
A card with a fee
£1,000 a month, 1% cashback, £24 a year fee
£10 a month, £120 a year, £96 after the fee
The fee is covered once you spend £200 a month.
A capped card
£1,000 a month, 5% cashback, £10 monthly cap
£10 a month, an effective 1%
The cap is reached at £200 of spending.
About Cashback Calculator
A cashback calculator shows what a card or scheme really gives you. Cashback is a percentage of your spending returned to you, so a card paying 1% on £1,000 a month returns £10 a month, or £120 a year. Many cards cap the monthly amount or charge a yearly fee, so the real benefit can be a lot less than the headline rate suggests.
Enter your monthly spend, the cashback rate, any monthly cap and any yearly fee. The tool applies the cap each month, takes the fee off the yearly total and tells you the rate you really get. It also works out the monthly spend at which the cashback just covers the fee, which tells you whether a card with a fee is worth having at your level of spending.
How to use Cashback Calculator
- Enter your spending a month and the cashback rate.
- Enter the monthly cap, or zero for no cap.
- Enter the yearly fee, if there is one.
- Read the cashback a month, a year and after the fee.
Common uses
- Comparing cashback cards
- Deciding whether a fee is worth paying
- Checking a cap
- Planning how much to put on a card
Frequently asked questions
How is cashback calculated?
Multiply your spend by the cashback rate. 1% of £1,000 is £10. Over a year of £1,000 months that is £120.
Is cashback with an annual fee worth it?
Only if the cashback is more than the fee. With a £24 fee and 1% back, you need to spend at least £200 a month for the cashback to cover it.
What does a cap mean?
It limits how much cashback you can earn in a month. With a 5% rate and a £10 cap, spending £1,000 gives £10, an effective rate of 1%.
Should I spend more to earn cashback?
No. Spending more to earn a little back loses money. Put on the card only what you would spend anyway.
What if I do not pay off the card?
Interest on a credit card is usually far higher than any cashback, so pay the balance in full each month for cashback to be a gain.