Is cashback or points better?

Cashback is simpler with guaranteed value. Points can be worth more but require optimization. Cashback is better if you want simplicity; points if you'll work to maximize them.

Do I pay tax on credit card cashback?

No - the ATO treats cashback as a rebate/discount on purchases, not as income. It's not taxable.

What's a good cashback rate?

1% or more on all purchases is solid. 2-3% on groceries/fuel is common for bonus categories. The best combinations can average 1.5-2% on all spending.

Cashback Calculator

Calculator

Calculate your annual cashback earnings from credit card spending

Free to useNo data storedAI insightsUpdated: February 2026

Cashback cards give you straightforward value - a percentage of every purchase back as cash. This calculator shows your total annual cashback and net value after fees.

Enter Your Details

Real-World Examples

Category Cashback Card

$3,000/month total. $600 groceries at 3%, $300 fuel at 2%, rest at 1%. $100 annual fee.

Inputs Used:

total:3,000groceries:600fuel:300fee:100

Grocery: $216/year. Fuel: $72/year. Other: $252/year. Total: $540. Net after fee: $440/year!

Frequently Asked Questions

Glossary

Cashback

A percentage of spending returned as cash - either as statement credit, check, or deposit.

Category Cap

Maximum spending that earns bonus rates in a category per quarter/year.

Rotating Categories

Bonus categories that change quarterly - must be activated each quarter.

Related Tools

Rewards Calculator

Compare points vs cashback

Card Comparison

Compare cashback cards

Annual Fee Calculator

Is your fee worth it?

How to Use

1Enter your total monthly spending
2Add the base cashback rate
3Break out spending in bonus categories
4Include the card's annual fee
5See your net annual cashback

Key Information

Base rates typically 0.5-1.5% on general spending
Bonus categories can be 2-5% (groceries, fuel, dining)
Some cards have caps on bonus category earnings
Cashback is taxed as a discount, not income

Pro Tips

Match your card to your spending (groceries, fuel, dining)
Watch for rotating 5% categories and activate them
Some cards let you choose your bonus category
Use multiple cards to maximize all category bonuses

Avoid These Mistakes

Ignoring category caps that limit bonus earnings
Not activating rotating category bonuses
Carrying a balance (interest >> cashback)
Paying annual fee when cashback doesn't cover it

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026