Which credit card earns more cash back overall?
Based on identical spending inputs, you’ll earn $215.52 cash back per year with Discover it Cash Back and $180.00 with Navy Federal cashRewards Credit Card. For context, the average annual rewards payout from the cashback credit cards in the investor.com database is $181.73.
The annual rewards payout assumes you charge $1,000 each month spread across the following spending categories: Dining ($145), Entertainment ($134), Gas ($140), Groceries ($198), Travel ($128), Pharmacy ($15), and Other ($240). The dollar amounts for each category are based on consumer spending data collected by the U.S. Bureau of Labor Statistics (i.e., how much the average American spends proportionally across the major credit card rewards categories). But you can — and absolutely should! — customize the inputs based on your actual monthly spending habits, using our rewards calculator.
To ensure the most accurate results possible, the rewards calculations for Discover it Cash Back and Navy Federal cashRewards Credit Card incorporate bonus rewards rates, spending caps, default rewards rates and annual fees, where applicable.
Is the Discover it Cash Back good?
The Discover it Year One incentive is 🔥. (You'll earn double the cash back on every dollar you earn for your anniversary.) But the $1,500 quarterly spending cap is a wet blanket.
thumb_up Likes
- 5% cash back on quarterly rotating spending categories
- Dollar-for-dollar match on all earned rewards at the end of your first year
- 0% APR on purchases and balance transfers for 15 months
- Free Social Security number alerts
- Accepted lots of places. Really!
- No foreign transaction fee
- Preapproval available
thumb_down Dislikes
- 5% cash back category changes quarterly
- 5% applies to up to $1,500 in spending each quarter
- Low 1% cash back rate on all non-bonus spending
- Requires reward category activation
- No extra protections like rental/travel insurance
| Category |
Default Rate |
Bonus Rate |
Bonus Spend Cap |
Bonus Spend Period (Months) |
| Gas |
1.00% |
- |
- |
- |
| Travel |
1.00% |
- |
- |
- |
| Dining |
1.00% |
- |
- |
- |
| Entertainment |
1.00% |
- |
- |
- |
| Pharmacy |
1.00% |
- |
- |
- |
| Groceries |
1.00% |
5.00% |
$1,500 |
3 |
| Other Purchases |
1.00% |
- |
- |
- |
Is the Navy Federal cashRewards Credit Card good?
The Navy Federal cashRewards card is a good choice if you have average credit, don’t always pay your balance in full, and have an existing Navy Federal Credit Union account that qualifies you for 1.75% cash back instead of 1.5%.
thumb_up Likes
- Up to 1.75% unlimited cash back available
- Navy Fed members can find out if they prequalify
- Competitively low APR
- No foreign transaction fees
- No cash advance fees for transactions at a Navy Federal branch or ATM
- Includes Visa Signature perks
thumb_down Dislikes
- 1.75% cashback rate requires setting up a Navy Federal direct deposit
- 1.5% rewards rate applies if you don't have direct deposit
- Low intro APR for new cardholders only offered occasionally
- Only available to Navy Federal Credit Union members
| Category |
Default Rate |
Bonus Rate |
Bonus Spend Cap |
Bonus Spend Period (Months) |
| Gas |
1.50% |
- |
- |
- |
| Travel |
1.50% |
- |
- |
- |
| Dining |
1.50% |
- |
- |
- |
| Entertainment |
1.50% |
- |
- |
- |
| Pharmacy |
1.50% |
- |
- |
- |
| Groceries |
1.50% |
- |
- |
- |
| Other Purchases |
1.50% |
- |
- |
- |
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Select and compare two credit cards head to head to see which offers the most bang for your buck.
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Methodology
The results of the investor.com Credit Card Rewards Calculator are based on the monthly spending amounts you enter and the annual dollar value of the rewards each credit card program pays per $1 spent. Credit card companies often express this payout amount as a percentage (e.g., 1.5% of every dollar spent) or on a points basis (e.g. ,1.5 points for every dollar spent). We converted all of them to a dollar amount (“Cash Back Per Year”) to make comparing offers easier.
To calculate the amount of cash back you could earn per year, we factored in:
- Spend category inputs: The default dollar values for each “Spend Category” in the Best Cashback Credit Cards tool — gas, groceries, travel, restaurant, entertainment, pharmacy, other — are based on average American spending data from the Consumer Expenditure Surveys from the U.S. Bureau of Labor Statistics. We also include additional spend categories (such as streaming services, online shopping, utilities, transit, Amazon and more) to help you see which rewards cards are most closely aligned with your actual spending patterns. We encourage you to customize the monthly spend inputs for the most accurate results.
- Tiered rewards rates: If a rewards credit card pays higher cashback rates on certain spending categories (also called “Bonus Rewards”), that difference is reflected in the total “Cash Back Per Year” tally.
- Rewards spending caps: Some cards impose category- or time-based limits (monthly, quarterly, annually) that affect the amount of rewards you can earn. For example, a card may pay 3% cash back on groceries on up to $1,000 of spending each quarter, then revert to the base/default rewards rate until the following quarter. We accounted for bonus spending caps and timeframe in the calculations.
- Default rewards rates: Purchases that exceed a spending cap are usually subject to a lower default rewards rate (e.g., 1% or 1.5%). We mathed that out too.
- Annual fees: If a rewards card charges an annual fee, we deducted that amount from the “Cash Back Per Year” total to provide a true accounting of a card’s annual rewards payout.
What’s not included in the “Cash Back Per Year” total is the cash value of any sign-up/introductory bonus. We highlight any Welcome Bonus separately. While sign-up bonuses can be the most lucrative part of getting a new cashback rewards credit card, not everyone will want or be able to do what it takes to earn the extra cash. (It usually requires spending a certain amount in a specified time period after the card is activated.)
