Below we run through exactly how rewards are calculated. Learn **how to setup rewards** in our setup article. Learn about how we define** points balances and points pending in our overview article**.

## Reward rule:

Furniture products group. For every $5 dollars spent in the Furniture product group give 10 points.

## Example Cart:

**Furniture product 1: **

QTY = 5

Price = $ 12.30

Line total = $ 61.50 ( 5 * 12.30 )

**Furniture product 2: **

QTY = 1

Price = $ 18.76

Line total = $ 18.76 ( 1 * 18.76 )

**First calculation**

First, we add all the line totals that are within the same group. In this case, we add all the furniture product line totals together.

18.76 + 61.50 = **80.26**

**Second calculation**

We then take calculated the multiples of by taking the value in the "Spend" column and dividing it by the product group line total above.

80.62 / 5 = 16.12

Then, we round down to the nearest whole number =** 16**

**👍Important: **We always round down to the nearest whole number. E.g. $16.99 would become 16.

**Minimum Spend**

We now check to see if the **Line totals** are **>** the **Minimum Spend** for that product group rule. If yes, we do the Third calculation. If not, we give 0 points for this product group.

**Third calculation**

We then take the "Reward points" value and multiply it by the multiples of whole number we found above.

16 * 10 = 160

**Thus, the customer will get 160 points for this purchase. **

**Last calculation - Rinse and Repeat**

If we have multiple product groups in the cart we would do the above calculation for each of the product groups and sum all the product group totals. The sum of all product group totals is then displayed to the customer in the minicart or cart.

## Calculation of the {Product.Points} variable

Inside the badges you will see the variable that allows you to show points for each product. This is a great way to encourage purchases. However, it will not always be accurate at the product level as the points are calculated on the product group level. Below you will see how we calculate the points.

**First calculation**

We take the price of the item and divide it by the "spend".

Product price ( exclusive of VAT/TAX ) / Spend = Multiples of

**Second calculation**

We take the value (Multiples of) from the above calculation and round down to the nearest whole number.

floor(Multiples of) = multiples of rate

**Last calculation**

Finally, we take the multiples of rate and multiply that by the "Reward points".

Multiples of rate * Rewards = { Product.Points }

**Minimum spend **

You may have noticed that we don't take into consideration the "Minimum spend". This is because the the "Minimum spend" is calculated against the product group total and not simply an individual product.

Thus, you can see that the { Product.Points } is very accurate when you have a simple rewards plan. In other more complex plans you may choose to simply describe the rewards offering as you see below.

**" Earn 500 points for Every $50 spent on Furniture"**

**🎉 Have a great Day**