This calculator helps you determine whether a cash back rewards card or a low-interest credit card would be more financially beneficial based on your spending habits and payment behavior.

How It Works:

• For those who pay in full each month: The calculator compares the cash back rewards against any annual fees.
• For those who carry a balance: The calculator compares the cash back rewards minus interest paid against the interest savings from a low-interest card.
• The recommendation is based on which option provides the greatest net financial benefit.

Key Considerations:

• Cash back cards typically offer 1-5% back on purchases but have higher interest rates
• Low-interest cards save you money if you carry a balance but usually don’t offer rewards
• Annual fees can significantly impact the value of either card type
• The best choice depends on whether you pay your balance in full each month