Cashback rates are calculated as a percentage of the amount you spend on your credit card, usually rounded up to the nearest pound or penny.
Let’s take an example of a flat rate offer at 1.5%:
You spend £500 a monthYour cashback rate is 1.5%You’ll get £7.50 in cashback
If you have a tiered rate, you might receive 1% on spends up to £1,000, then 2% on any spends after that.
Just be aware that some cards have a limit to how much cashback you can get in total, while those advertising ‘unlimited’ cashback generally offer lower cashback rates.