Cash Back Rewards Estimator
Quick answer: Cash back is estimated as monthly spend × cash-back rate × 12, minus any annual fee. With $600/mo on groceries at 3%, $300 on dining at 2%, $150 on gas at 2%, and $800 elsewhere at 1%, you'd earn about $35/month — $420 a year — with no annual fee. Enter your own spending and rates above to see your monthly, annual, and net-after-fee totals.
Is that rewards card actually worth it? This cash back rewards estimator takes your monthly spending in five categories and each category's rewards rate, then shows what you'll earn monthly and yearly — after the annual fee.
Enter your numbers
Your results
Estimates based on the spending and rates you enter. Actual rewards depend on your real spending and card terms.
How to use this calculator
Enter your average monthly spending for each category and the cash-back rate your card pays in that category. Add the card's annual fee (enter 0 for no-fee cards). Totals update instantly.
For example, $600/mo on groceries at 3% earns $18/mo, $300 on dining at 2% earns $6, $150 on gas at 2% earns $3, and $800 on everything else at 1% earns $8 — $35/month total, or $420/year, with no annual fee.
How it works
Annual cash back = 12 × the sum of (monthly spend × rate ÷ 100) across all five categories, minus the annual fee. Net after fee = annual cash back − annual fee. Effective rate = annual cash back ÷ total annual spend × 100.
Reference data
| Figure | Value / origin |
|---|---|
| Cash-back rates | Entered by you — not looked up from any card database |
| Monthly spends | Entered by you |
| Months per year | 12 (calendar constant) |
| Sign-up bonuses | Not included — add one-time bonuses manually |
Source: no external data is consumed on this page — every figure is computed live from your inputs.
Method & sources
Each category's monthly reward is monthly spend × (rate ÷ 100). The five category rewards are summed for the monthly total, multiplied by 12 for the annual gross, and the annual fee is subtracted for the net figure. The effective overall rate is annual cash back ÷ total annual spend × 100. All outputs are estimates, since they depend on the spending you enter and your card's actual terms.
- No external data sources are used on this page — every figure is computed live from your inputs with the formulas above.
Worked example
Groceries $600 × 3% = $18/mo; dining $300 × 2% = $6/mo; gas $150 × 2% = $3/mo; travel $0 × 3% = $0; everything else $800 × 1% = $8/mo. Monthly total $35 → annual $35 × 12 = $420; fee $0 → net $420. Total monthly spend $1,850, so the effective rate is $420 ÷ $22,200 = 1.89%.
Frequently asked questions
How is annual cash back calculated?
Multiply each category's monthly spend by its cash-back rate (as a decimal) to get that category's monthly reward, add them up, multiply by 12, and subtract the card's annual fee. Example: $600 of groceries at 3% earns $18 per month.
Should the annual fee count in my decision?
Yes — subtract it from the gross rewards. A card paying $420 a year with a $95 fee nets $325, which a no-fee card paying $350 would beat.
What does the effective cash-back rate mean?
It is your total yearly cash back divided by your total yearly spending — a single number that lets you compare cards. With $420 back on $22,200 of spend, the effective rate is 1.89%.
Do sign-up bonuses count here?
No — this estimator covers ongoing category rewards only. Add a one-time sign-up bonus to the annual figure yourself when comparing first-year value.
Are the results exact?
These are estimates: they use the spending and rates you enter. Actual rewards depend on your real spending and your card's terms, so treat the figures as a planning estimate, not a promise.