Cashback calculator for Shopify rewards
Calculate cashback earned from eligible purchases, then estimate how much store credit members will redeem. Compare product costs on additional purchases with cash payments replaced on purchases that would happen anyway.
Calculate cashback rewardsYour earning group and redemption window
Choose one earning period and follow its rewards for a defined redemption window. For example, track rewards earned in September for 90 days after each issue. Amounts are USD; defaults are fictional examples.
Rewards earned and expected redemption
- Eligible spend in the earning period
- Calculating…
- Cashback earned as store credit, at face value
- Calculating…
- Expected credit redeemed within the window
- Calculating…
- Expected credit unredeemed within the window
- Calculating…
Unredeemed credit may be used later. It is not automatically profit or permanently unused credit.
Two separate redemption cost scenarios
| Entirely additional credit-only purchases | Credit replaces cash on unchanged purchases |
|---|---|
| Calculating… Product cost of fulfilling additional merchandise purchases | Calculating… Cash payment displaced on purchases that would happen anyway |
The first scenario assumes no cash top-up and uses product gross margin to infer costs. The second assumes the original purchase would be unchanged except for its payment method, so existing product costs are not counted again.
These are alternative illustrations, not amounts to add together, guaranteed cost limits or a profit forecast. Shipping, transaction fees, other benefits, acquisition, support, overhead and taxes are excluded. No extra cash spending or repeat-purchase lift is assumed.
Cashback calculation formulas
- Eligible spend = average eligible spend per member × members.
- Cashback earned = eligible spend × cashback rate.
- Expected redeemed credit = cashback earned × expected redemption rate.
- Expected unredeemed credit = cashback earned − expected redeemed credit.
- Additional-purchase product cost = redeemed credit × (1 − product gross margin).
- Cash payment displaced on unchanged purchases = redeemed credit.
Convert percentages to decimals before multiplying. A $120 purchase at 5% earns $6. The calculator uses unrounded values and displays currency to cents. Actual reward rounding and eligibility can differ by configuration.
Worked cashback example
A fictional group of 100 members spends an average of $120 each in the earning period. Eligible spend is $12,000. At a 5% reward rate, they earn $600 in store credit. If 70% of that value is redeemed within the chosen window, expected redemption is $420 and $180 remains unredeemed in that window.
If the $420 funds entirely additional credit-only merchandise purchases at a 55% product gross margin, product cost is $420 × 45% = $189. If the same credit instead replaces cash on unchanged purchases that would have happened anyway, it displaces $420 of payment. Do not add these alternative amounts together.
The $12,000 of original spend is not assumed to have been caused by cashback. The calculator does not subtract reward costs from its gross profit or call the difference a program return.
Choose a consistent earning period and redemption window
Group rewards by when they were earned, then follow that group over a stated period. A monthly earning period does not mean all rewards are redeemed in that month. Do not combine September rewards with redemptions of older balances. Compare groups at similar ages when estimating redemption.
The redemption input is the share of reward value used, not the share of members who used it. Treat credit still outstanding at the end of the window separately from credit known to have expired or been reversed.
Store credit cashback and cash payouts
This tool models rewards issued as store credit. Memberply cashback rewards return part of eligible purchases as credit for future purchases. Shopify describes store credit as a payment method in its store credit documentation. Use Shopify new customer accounts for the member credit experience.
A cash payout is a different model: paying $6 to a customer costs $6 before any payout fees. Do not apply a product-margin multiplier to a cash payout. For store credit, whether redemption causes an additional purchase or replaces a cash payment changes the economic comparison.
Plan a cashback benefit and measure its return
This is an uncapped percentage-reward estimate. Match eligible spend to your configured products, purchase requirements and treatment of shipping and taxes. Account separately for fixed rewards, order caps, returns, reversals and any further rewards on redemption orders.
Use the store credit program guide to plan the benefit, the store credit calculator for fixed credit issues and allocated membership fees, and the loyalty ROI calculator for assumed incremental contribution. Measure changes in buying behavior and all program costs before drawing conclusions about return.
Explore Memberply on ShopifyCashback calculator questions
How do I calculate cashback earned?
Multiply eligible spend by the cashback percentage as a decimal. A $120 eligible purchase at 5% earns $6 in rewards. For a group, multiply average eligible spend per member by the number of members first. This calculator assumes one uncapped percentage rate.
Is Memberply cashback paid as cash?
Memberply cashback rewards are issued as store credit for future purchases. This calculator models that credit, not a bank payment or a credit card cashback offer. Use Shopify new customer accounts for the member store credit experience.
Does redeemed cashback cost only the product cost?
Only in the narrow scenario where credit funds entirely additional merchandise purchases without any cash top-up. If credit replaces cash on an otherwise unchanged purchase that would have happened anyway, the cash payment displaced equals the redeemed credit. The calculator shows these as separate scenarios.
What does expected redemption mean?
It is the percentage of issued reward value expected to be used within your chosen redemption window, not the percentage of members who redeem. Track the rewards earned in one defined period, such as September, for a consistent window, such as 90 days after each issue.
Is unredeemed cashback profit?
No. Rewards not redeemed within the chosen window may be used later. This calculator does not determine expiry, breakage, accounting revenue or liabilities. An unredeemed balance is not automatically a saving.
Can this calculator tell me whether cashback is profitable?
No. It does not measure purchases caused by cashback, membership fee revenue or net profit. The scenarios exclude shipping, transaction fees, acquisition, other benefits, support, overhead and taxes. Compare measured incremental contribution with all program costs to assess return.
Does it include reward caps, returns and repeat rewards?
No. It assumes one percentage rate on the eligible spend you enter. Adjust your inputs for qualifying products and purchases, and account separately for per-order caps, fixed rewards, returns, reversals and any further rewards earned on redemption orders.