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Loyalty Program
Calculators

Free tools to help you design optimal loyalty programs. Enter your parameters and see results instantly.

Progressive Reward Rate Calculator

Calculate tiered cashback rates based on spending (Capped Progressive Rate Model)

$
Your Reward Rate
2.5%
Tier Level
3
$100 per tier
Cashback Value
$9
= $350 × 2.5%

Tier Structure

TierSpending RangeReward Rate
0$0 – $991.0%
1$100 – $1991.5%
2$200 – $2992.0%
3$300 – $3992.5%
4$400 – $4993.0%
5$500 – $5993.5%
6$600 – $6994.0%
7$700 – $7994.5%
8$800+5.0%MAX

Calculation Formula

R = min(R_max, R_base + floor(V / S_step) × R_step)
R = min(5%, 1% + floor($350 / $100) × 0.5%)
R = min(5%, 1% + 3 × 0.5%)
R = min(5%, 2.5%)
R = 2.5%

Example Scenarios

A Starting Point for Your Strategy

These calculations provide a general framework to help you think through reward rate structures. However, the optimal rates for your business depend on many factors — your industry, profit margins, customer lifetime value, competitive landscape, and specific business goals. What works for a luxury retailer may not suit a grocery chain, and vice versa.

Not sure where to start? We specialize in designing data-driven loyalty programs tailored to your unique business context. Let us help you build a reward system that drives real growth.

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