Estimate total savings or rewards earned from cash back credit card offers based on spending and reward rate.
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Credit Cards
Calculate how much cash back you earn from credit card spending, subtract the annual fee, and find the break-even monthly spend needed to justify the card.
Cash back credit cards return a percentage of each purchase as a reward. The effective value depends on the reward rate, your spending volume, and any annual card fee.
A card with 2% cash back on 2,000/month spending earns 40/month or 480/year. If the annual fee is 95, the net reward is 385/year.
The break-even monthly spend is the amount where annual cash back exactly equals the annual fee. Below that spend level, a no-fee card would be more cost-effective.
Break-Even Monthly Spend = Annual Fee / (Cash-Back Rate / 100) / 12
The minimum monthly spending needed for cash back to cover the annual card fee.
This calculator assumes a flat cash-back rate across all spending. Many cards offer tiered rates (e.g. 3% groceries, 1% everything else). It does not account for sign-up bonuses, promotional rates, or spending caps.
Frequently asked questions
Not necessarily. A higher fee card typically offers a higher cash-back rate, but you need enough spending volume to exceed the break-even point. Compare net annual reward (cash back minus fee) across cards for your specific spending level.
Sign-up bonuses can be significant (often 150–300) but are one-time. Evaluate the card’s ongoing value separately from the introductory bonus.
Many premium cards offer higher rates in specific categories (groceries, travel, dining). For tiered cards, calculate each category separately and sum the results for a more accurate total.
In the US, cash-back rewards on personal purchases are generally considered rebates (not income) and are not taxable. However, sign-up bonuses earned without a spending requirement may be taxable. Consult a tax professional for your situation.
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