What is 2% cash back?
When a rewards program or credit card is offering 2% cash back, it means that for every $1 you spend you will earn 2 cents ($0.02) in the form of cash back.
How do you calculate 2% cash back?
You can calculate 2% cash back multiplying 0.02 by the amount you plan on spending. So if you spend $1,000, it would be $1,000 x 0.02 which equals $20.
2% cash back calculator
Use the 2% cash back calculator below to calculate cash back based on spend.
| Total Cash Back: | $2.00 |
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Best 2% back cards
There is a small handful of credit cards that offer 2% back on your purchases. This includes cash back cards as well as travel rewards cards.
If you're looking for simple cash back and don't want to have to worry about spending in specific categories or categories that change every quarter, a flat-rate 2% cash back or travel rewards card is an excellent choice.
Here are a few of the best 2% back credit cards in the market:
- Citi Double Cash Card - Earns 1% cash back on purchases and 1% back when you pay off those purchases for a total of 2% back. No annual fee.
- Capital One Venture Rewards Credit Card - Earn an unlimited 2X miles on all purchases that can be put towards any kind of travel including airfare, hotels, car rentals, and more—all at a low annual fee.
Advantages of 2% Back Cards
One of the best advantages to having a 2% back cash back card, is that it typically pairs well with other cards under the same rewards program. This allows you to easily maximize your cash back rewards across specific categories.
For example, here's the earning rates of the Citi Double Cash Card and the Citi Custom Cash℠ Card:
Citi Custom Cash Card
- Earns 5% back on purchases in your top eligible spend category each billing cycle on up to the first $500 spent (then 1%)
- Earns 1% back on all other purchases
Citi Double Cash Card
- Earns up to 2% back on all purchases (1% back on purchases, and 1% back when you pay off those purchases)
When paired together, you can use the Citi Custom Cash to earn 5% back in one of the eligible categories the card features and use the Citi Double Cash to earn 2% back on all other purchases. This is made even better by the fact that both cards have no annual fee.
Calculator: Which card will earn you the most cash back?
Input your monthly and yearly spend amounts into the tool below to find out which credit cards will earn you the most cash back on your spending.
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- There's no good card options based on the spend entered.
- The calculator is having a brain-fart and is not calculating rewards properly.
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Results
These estimates are to help guide you towards making the best decision when it comes to picking up a rewards credit card. They should be used for illustrative purposes only.
FAQs
What is 2% cash back?
2% cash back means you will earn 2 cents ($0.02) for every $1 spent.
Are 2% cash back credit cards good?
2% cash back credit cards are among the best rewards cards you can have.
Are there cards that earn higher than 2%?
There's a very few select cards that earn 2.5%-3% cash back on all purchases. There's also cards that feature 5% quarterly rotating categories such as the Chase Freedom Flex℠ and Discover it® Cash Back card (which I recommend picking up).
How much cash back will I earn with a 2% cash back card?
It depends on how much spend you run through the card and whether or not the card has an annual fee. You can use the 2% Cash Back Calculator on this page to calculate total cash back based on your spend.
What's the best 2% cash back card?
There's no card that is considered to be "The Best", but the most popular 2% cash back in the market is the Citi® Double Cash Card and Wells Fargo Active Cash℠ Card.
Are there 2% points and miles cards?
Yes. There's a good handful of points and miles cards that earn a 2% return. The most popular card is the Capital One Venture Rewards Credit Card. The Blue Business® Plus Credit Card from American Express is also another superb card.
How do I know what's the best credit card for my spend?
You can use the Search For Credit Cards By Spend calculator to get a list of the best credit cards based on your spend across categories.
