Credit Card Combination & Rewards Calculator Tool (2024)

FAQs

How to calculate credit card rewards? ›

You can calculate your monthly credit card payment by multiplying the monthly interest rate by the outstanding balance. The monthly rate can be obtained by dividing your APR by 12 for the number of months in a year. The simplest way to do that is using a credit card calculator.

Credit card churning is the process of opening cards for the sole purpose of earning welcome bonuses or other benefits. Usually, it involves closing cards after the bonus posts to your account and before the next annual fee is charged.

The formula for your cash back calculation will be: Purchase Price x Cash Back Percentage (as a decimal) = Cash Back Total. An example would be if you bought a pair of sneakers for $75 using a card with a cash back rate of 1.5%. You would calculate: $75 x . 015 = $1.125 cash back.

To figure out the number of cents per point or mile you'll get from a specific redemption, divide the cash price of the award by the number of points or miles needed. For example, if an award flight that requires 25,000 miles to book would cost $500 if you paid cash, $500 / 25,000 = 2 cents per mile.

The redemption amount is calculated by adding the face value of the bond to the accrued interest. The accrued interest is calculated by multiplying the face value of the bond by the coupon rate and dividing by the number of coupon payments per year.

Apply the percentage to your current credit card balance and then add your fees and past-due amounts. First, you'll owe 2% on the balance of $5,000, then you'll add $120 past due and $80 in late fees. That would make your minimum payment $300.

What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

What is credit card flipping? ›

Credit card flipping is the process of applying for credit cards to earn sign-up bonuses, then closing the account or moving on to another card, which can be bad for your credit score. However, this isn't often possible, as many card issuers have instituted rules to prevent this from happening.

Card issuers often offer large intro bonuses to new cardholders, and some people try to game the system by opening cards, earning the bonus and moving on to the next card. Churning isn't illegal, but it is controversial and sometimes leads to repercussions by card issuers.

Three percent cash back is another way of saying that you will earn $3 in rewards for every $100 spent.

Rakuten saves you money by using a simple business model: Stores pay Rakuten a commission for sending our members to shop at their websites. Rakuten then splits that commission with you, in the form of Cash Back. To earn Cash Back: Join Rakuten: It's free and only requires an email address and a password.

Getting 5% cash back on a credit card means you will earn $5 in cash back rewards for every $100 you spend on qualifying purchases.

Rewards rates will vary depending on the particular credit card you're using, but generally rewards are worth around 1 cent per point. If you earn 1,000 points, that would be worth around $10.

Adam McCann, Financial Writer

10,000 Ultimate Rewards points are worth an average of $101, according to WalletHub data. You get the best value when redeeming Ultimate Rewards points for travel booked through Chase, though there are a few other redemption options to choose from.

In most cases, 50,000 Chase points are worth $500 for travel, cash back, or gift cards. The same 50,000 points can be worth $625 with the Chase Sapphire Preferred® Card or Ink Business Preferred and $750 with the premium Chase Sapphire Reserve®.