1. What is 1.5% Cash Back?

1.5% cash back is a common credit card reward where you receive 1.5% of your purchase amount back as a credit or statement balance reduction. Many credit cards offer this flat-rate cash back on all purchases.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Purchase Amount — The total amount spent in US dollars
• 0.015 — The decimal equivalent of 1.5%

Example: For a $100 purchase, cash back would be $100 × 0.015 = $1.50

3. Benefits of Cash Back

Details: Cash back rewards provide real money back on purchases you're already making, effectively giving you a discount on everything you buy with the card.

4. Using the Calculator

Tips: Enter your purchase amount in US dollars. The calculator will instantly show you how much cash back you would earn at the 1.5% rate.

5. Frequently Asked Questions (FAQ)

Q1: Is 1.5% cash back good?
A: 1.5% is a solid flat-rate cash back offer, especially when compared to cards that offer tiered rewards or rotating categories.

Q2: How is cash back paid out?
A: Typically as a statement credit, check, or direct deposit, depending on your card's terms.

Q3: Are there limits to cash back earnings?
A: Some cards have annual limits, while others offer unlimited 1.5% cash back on all purchases.

Q4: Does cash back expire?
A: Policies vary by issuer, but many don't expire as long as your account remains open and in good standing.

Q5: Is cash back taxable?
A: Generally no, the IRS considers cash back rewards as a rebate rather than taxable income.