Welcome to the world of travel rewards! If you're new to points and miles, this guide will help you understand why calculating point values is important and how to use a points calculator effectively.
Travel rewards programs offer "currency" in the form of points or miles that you can use instead of cash to book:
You earn these points by:
Not all point redemptions are created equal. The same 25,000 points might get you:
Option A: A $200 hotel room = 0.8 cents per point
Option B: A $150 flight = 0.6 cents per point
Option C: A $500 business class upgrade = 2.0 cents per point
By calculating the value, you can make smarter decisions about when and how to use your points.
CPP is the universal language of points valuation. It tells you how much each point is worth in real money.
Simple Example:
If a hotel costs $100 in cash OR 10,000 points:
Each point is worth: $100 ÷ 10,000 = $0.01 = 1 cent per point
Value is personal. If you don't have a lot of points and are saving for a big redemption, you might value your points more highly than someone who has a huge stockpile of points. If taking a vacation is not in your budget, but you have points to spend, maybe getting value on the lower side is fine for you. So, don't take our word for it. Here's a simple rule of thumb for beginners to use as a guide:
If you can "cash out" your points for 1.0 CPP (like getting a $100 statement credit for 10,000 points), then any redemption below 1.0 CPP is a bad deal—you're better off taking the cash!
Let's walk through a simple example:
You found a hotel for $200 cash or 40,000 points.
You have $1,000 to spend on flights. The program sells points at 1.5 CPP. How many points is that?
You want to book 50,000 points worth of flights. If your points are worth 1.25 CPP, what's the cash equivalent?
Don't overthink it at first. Just compare: is the cents per point value better than 1.0? If yes, it's probably a decent use of points.
Use the calculator's history feature to track your redemptions. Over time, you'll see patterns and learn what good value looks like for your favorite programs.
It's tempting to save points for a "perfect" redemption, but points lose value over time. A good redemption today is better than waiting years for a perfect one.
A 1.2 CPP redemption for a trip you'll love is better than a 2.0 CPP redemption for a trip you won't take. Use points for experiences you value!
A: Not necessarily. While high CPP is good, what matters most is using points for travel you actually want. A 1.5 CPP redemption for your dream vacation beats a 3.0 CPP redemption you'll never use.
A: Try to get as close as possible. Look for the same dates, same cabin/room type, and include all taxes and fees. If there's a range, use the middle value.
A: Yes! Always include all taxes and fees in your cash price. If the award also has cash fees, subtract those first before calculating.
A: Programs can change award pricing anytime, which affects CPP. Calculate the value fresh for each redemption—don't rely on old numbers.
Now that you understand the basics:
Remember: the goal isn't to become a points expert overnight. Start with simple calculations, and you'll naturally develop an intuition for good value over time!