Points vs Cash Calculator
Calculate whether to book your next flight or hotel using credit card rewards points or cash. Realize true values in cents per point.
Interactive Calculator
1. Provide Details
$
$
¢
2. Output Results
How to Calculate: Formula & Steps
Compares the cash-equivalent value of using points against a target redemption benchmark (e.g. 1.2 or 1.5 cents per point).
Formula Used:
Redemption Value (cents/point) = (Cash Price - Fees) × 100 ÷ Points RequiredStep-by-Step Calculation Example
A $500 flight costs 30,000 points + $5.60 in fees. Value is ($500 - $5.60) × 100 ÷ 30,000 = 1.65 cents/point. If your target is 1.2 cents, booking with points is recommended.
Common Mistakes to Avoid
- Forgetting to subtract award taxes and carrier fees from the cash price before dividing by points.
Practical Use Cases
- Evaluating airline frequent flyer options
- Credit card points transfer decisions
Expert Tips
- Always search both cash rates and award space on the same day as reward availability can fluctuate.
Frequently Asked Questions About Points vs Cash Calculator
What is a good value per credit card point?
Typically, a redemption value above 1.5 cents per point is considered excellent. Standard cash back redemptions offer exactly 1.0 cent per point.
Should I book flights or hotels with points?
Flights (especially business class) often offer much higher point value redemptions than standard hotels.
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