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What Credit Card Points And Miles Are Worth

Diana Mason by Diana Mason
December 29, 2021 3:27 pm CST
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I’m sure you’ve seen some amazing introductory offers out there when shopping for a new credit card. But how much is 50,000 points, really? And how much is one point or mile actually worth?

You see, not all rewards are created equal. Fifty-thousand points on one card might be worth less than 30,000 miles on another card. Keep reading to find out how you can calculate the value of your points and miles and maximize their value.


Points vs. Miles

Points and miles work in similar ways. Depending on the program and the rewards card, you’ll earn either one with each eligible purchase. Once you’ve compiled enough, you can redeem your points or miles for a variety of rewards.

So what’s the difference? Airline co-branded cards usually refer to “points” as “miles.” You can redeem them for flights, which will get the most value. Because they have no set value, it takes a bit more brainpower to maximize the value of your miles.

On the other hand, points often have given values, and they’re usually more flexible when it comes time to redeem them. Options might include cash back, gift cards, merchandise and travel purchases.


Do The Math

To determine your rewards redemption value, use this simple equation:

First, get the cash price of your reward and multiply that by 100. This will convert the dollar amount into cents. Then, divide that by the number of points or miles you need to redeem the reward. What you end up with is the per-point or per-mile value in cents.

Let’s say I want to book one hotel night. The cash price is $300, and the reward price is 60,000 points. How much is my redemption value?

Each point is worth $0.50 in the above scenario. As a rule of thumb, a per-point or per-mile value of $0.01 is average. Anything less is considered sub par. Anything more, you’ve got yourself a good deal.


Factors To Consider

The redemption value is just one part of the overall rewards value. You should also factor in the earn rate, reward fees, card costs and points transfer potential.

Earn RateReward FeesCard CostsPoints Transfer Potential

This rate is the amount of points or miles you receive for every dollar you spend. Some cards have a flat earn rate for every purchase. Others give you double, triple or more for purchases within bonus categories.

In the equation above, the cash price should include the full amount of the paid booking. That includes any taxes and fees, and excludes any added expenses as a result of booking the reward. For example, if you have to pay $50 to redeem for a hotel stay that normally costs $300, then you’re only getting a $250 value for your points.

To get a truer sense for the value of your points or miles, deduct these kinds of expenses from the cash price before you dive into the rest of your calculations.

Take the hotel night example above and factor in the $50 expense to book the reward stay. The per-point value drops from $0.50 to $0.42.

How much does your rewards card cost? This includes annual fees, interest and other costs that decrease the value of your points or miles. If you carry a balance, the interest charge will easily negate your rewards value.

Here’s a good rule of thumb: If you pay more in fees and interest than you earn in points or miles, get rid of the card. And by all means, pay your credit card balance – full and on time – every month.

Some rewards cards will let you transfer your points to a partner program. You might want to do a transfer if you need more miles to purchase a flight or if you want to take advantage of a better points or miles value. Before you do the transfer, it’s important to not only consider the transfer ratio, but also the new redemption value. You don’t want your points to lose their worth when you make the switch. 


What They’re Worth

I came up with these figures by calculating what I could get – on average – from redeeming points or miles. Here’s how much they’re worth, according to reward program:

Hotel Rewards

Domestic Airline Rewards

International Airline Rewards

Other Rewards Programs

Valuations Table
REWARDS PROGRAMVALUE IN CENTS
Accor Le Club2.0*
Aeromexico Club Premier1.5
Aeroplan Loyalty Program1.5
Alaska Mileage Plan1.8
American AAdvantage1.4
American Express Membership Rewards2.0
Amtrak Guest Rewards2.5
ANA Mileage Club1.4
Asia Miles1.3
Asiana Club1.4
Avianca LifeMiles1.7
Avios1.5
Bank of America Premium Rewards1.0
Barclaycard Arrival Miles1.0
Best Western Rewards0.7
Capital One Credit Card Rewards1.4
Chase Ultimate Rewards2.0
Choice Privileges0.6
Citi ThankYou Points1.7
Delta SkyMiles1.2
Diners Club Rewards2.1
Discover Rewards1.0
Emirates Skywards1.2
Etihad Guest1.4
Flying Blue1.2
Frontier Miles1.1
HawaiianMiles1.2
Hilton Honors0.6
IHG Rewards Club0.5
JetBlue TrueBlue Rewards Program1.3
Korean Air SkyPass1.7
LATAM Pass Points1.5
Marriott Bonvoy0.9
Miles & More1.4
Qatar Airways Qmiles0.8
Radisson Rewards0.4
Singapore Krisflyer1.3
Southwest Rapid Rewards1.5
Spirit Airlines Free Spirit0.4
Turkish Airlines Miles and Smiles1.3
U.S. Bank FlexPerks1.5
United MileagePlus1.4
Virgin Atlantic Flying Club1.5
Wells Fargo Go Far Rewards1.5
World of Hyatt Loyalty Program1.7
Wyndham Rewards1.2

*Value in Euros (€0.02)


Final Thoughts

Maximizing the value of a rewards card may require some legwork, but it’s usually worth it in the long run. To get the most out of points or miles, make sure to meet the introductory offer requirements and pay your balance in full every month. Lastly, don’t spend more than you usually would just for the rewards. It won’t be very “rewarding” in the long run.

READ MORE: SEE THE BEST BANK BONUSES HERE AND THE BEST INVESTING BONUSES HERE.

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Diana Mason

Diana Mason

Diana's passion for travel eventually led to her separation from the 9 to 5 office life and into the arms of freelance work. Cali-born and Philly-bred, she's a creative professional with a delightful knack for words. When she's not gallivanting across the globe, Diana can be found writing (of course), teaching yoga and dreaming of her next big adventure.

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Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
Disclaimer: These responses are not provided or commissioned by the bank advertiser, credit card issuer, hotel, airline or other entity. Responses have not been reviewed, approved or otherwise endorsed by any of the entities included within the post. It is not the bank advertiser's or any other entity's responsibility to ensure all posts and/or questions are answered.

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