Here's How Much You Can Earn a Year With 2% Back in Credit Card Rewards

Published on Feb. 20, 2024

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KEY POINTS

Putting just $500 a month on a 2% cash back card would earn you more than $100 a year.
Monthly expenses of $2,500 at 2% is $600 a year in cash back.
You can find a few good unlimited 2% cash back cards if you want an easy one-card wallet.

Check out our pick for the best cash back credit card of 2024

Some folks get a kick out of maximizing their credit card rewards and eking out every extra bit of return we can get. Some folks…don't.

If you're in the latter category, may I introduce the 2% cash back card? These flat-rate cards earn 2% cash back on your purchases, no tracking, no activating -- no hoops. You just use your card to pay your bills and make purchases, then pay your credit card balance in full and on time every month.

Voila! You've earned 2% back on just about everything, very little effort required.

Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards

How 2% adds up over the year

Alright, so 2% back doesn't sound like that much at first. (I mean, 2% of a pizza is about one bite.) When you're talking about 2% of all your spending for an entire year, however, it really does add up.

Here's what you could earn in cash back with a 2% flat-rate card based on your monthly spending:

Monthly Spend	Annual Spend	Annual 2% Cash Back
$100	$1,200	$24
$250	$3,000	$60
$500	$6,000	$120
$750	$9,000	$180
$1,000	$12,000	$240
$1,500	$18,000	$360
$2,000	$24,000	$480
$2,500	$30,000	$600
$3,000	$36,000	$720
$4,000	$48,000	$960
$5,000	$60,000	$1,200
$10,000	$120,000	$2,400

Data source: Author's calculations.

A recent survey by The Ascent found that the average household's monthly expenses, minus housing, are about $4,000 a month. If all of that went onto a 2% cash back card, that could mean an extra $960 a year. Not bad considering that managing your credit card probably takes five minutes a month.

Cards that earn 2% cash back

Although they've gotten more common in the last few years, 2% cash back cards are still somewhat rare. These are some of the best ones we've found.

Wells Fargo Active Cash Card

The Wells Fargo Active Cash® Card (see rates and fees) is an all-around strong pick, offering unlimited 2% cash rewards on purchases with no annual fee. Plus, earn a competitive welcome bonus and intro APR offer.

Citi Double Cash

The Citi Double Cash® Card earns 1% cash back when you make your purchases, plus 1% back when you pay your bill, for a total of 2% cash back. There's no annual card fee, and you can potentially earn a welcome bonus.

Amex Blue Business Cash

The Blue Business Cash™ Card from American Express (see rates and fees) earns 2% cash back on your first $50,000 in card spend each year. This small business card has no annual fee, and you can earn a very competitive welcome bonus. Terms apply; enrollment may be required.

Capital One Spark 2% Cash Plus

The Capital One Spark 2% Cash Plus (see rates and fees) is a small business card that earns unlimited 2% cash back on purchases with no cap. This is a charge card that you must pay in full each month and it has a $150 annual fee.

Flat-rate travel rewards cards

If you like to travel -- and want to do it for free -- then points could be more valuable than cash back. Take a look at these flat-rate travel rewards cards ideal for both one-card wallets and non-bonus purchases in broader strategies.

Capital One Venture X Card

The Capital One Venture X Rewards Credit Card (see rates and fees) earns 2X miles per dollar on purchases, no categories required. You can get great value from Venture Miles when you transfer them to a hotel or airline partner. This card has a high annual fee, but it also comes with annual travel credits that can help offset the cost.

Capital One Venture Card

The Capital One Venture Rewards Credit Card (see rates and fees) also earns unlimited 2X miles per dollar on purchases, but with a much lower annual fee. It lacks the travel credit and several other perks of the more expensive card, however it often offers the same welcome bonus.

Capital One Spark 2X Miles

The Capital One Spark 2X Miles (see rates and fees) is a small business card that earns 2X miles per dollar on purchases. It also comes with a travel credit, welcome bonus, and waived annual fee for the first year.

Amex Blue Business Plus Credit Card

The Blue Business® Plus Credit Card from American Express (see rates and fees) earns 2X points per dollar on the first $50,000 in card purchases each year. Amex Membership Rewards can be transferred to many hotel and airline partners for free stays and flights. This card also has no annual card fee, a competitive welcome bonus, and an intro APR offer on purchases. Terms apply; enrollment may be required.

Always pay in full to make it worthwhile

No matter what kind of rewards you earn, make sure you're staying on top of your balances. You always want to pay your balance in full and on time each month to avoid interest fees. No amount of credit card rewards can make up for expensive interest charges!

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Our Research Expert

Brittney Myers

Brittney is a data-obsessed finance nerd whose personal credit card collection is in the double digits. She has been sharing personal finance advice with readers since 2016.

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