Cash Back or Low Interest Calculator

Cash Back vs Low Interest Calculator

Loan Amount or Purchase Price (₹): Loan Term (in months): Cash Back Offer (₹): Interest Rate with Cashback (%): Low Interest Rate (no Cashback) (%):

 Cash Back vs.  Low Interest Calculator

 Which credit card method helps you save more money? Enter Your Details:

 Your Average Monthly Credit Card Spending: $_______

 If you have a credit card, the current balance is $_______ (for interest calculations). Option 1: Cash Back Card

 Cash Back Rate: _______% (e.g., 2%)

 Annual Fee: $_______ (if any)

 Option 2: Low-Interest Card

 APR (Interest Rate): _______% (e.g., 12%)

 Fee: $_______ per year (if any) Do You Carry a Balance?

 Yes (calculate savings on interest) No (only compare cash back) Calculate Your Savings:

 Earnings per Year from a Cash Back Card: $_______ (rewards minus fees) 💳 Low-Interest Card Annual Savings: $_______ (interest avoided – fees)

 📊 Better Option: Cash Back or Low Interest

 (Based on your spending habits and debt!)

 How It Works:

 If You Pay in Full Monthly (No Balance):

 Cash Back Wins: Earn 2% on $1,000/month = $240/year.

 Low-Interest Card: $0 savings (no interest charged).

 If You Carry a $5,000 Balance:

 Advantages of Low Interest Rates: 22% APR = $500 saved/year.

 Cash Back (2% on spending): $120 – $500 interest = -$380 net loss.

 Example of a computation: Monthly Spending: $1,500

 Balance: $3,000

 Cash Back Card: 2% back, $0 fee → $360/year rewards

 Card with low interest rates: 9% versus 22% (saves $390 per year) Winner: Low-Interest Card (saves $30 more)

 Important Factors: ✔ Paying in Full?  → Cash Back is better.

 ✔ Carrying Debt?  → Low-Interest saves more.

 ✔ Annual Fees: Can negate benefits!

 Try It:

 🔹 Spend $2,000/month, $0 debt → Cash Back: $_______/year

 🔹 Spend $1,000/month, $4,000 debt → Low-Interest Saves: $_______/year

 (Note: Assumes consistent spending/balances.  For exact numbers, use your card terms.)