Even experienced points users make calculation errors that cost them value. Learn to avoid these common pitfalls and ensure you're always getting the best deal for your travel rewards.
The Problem: Many people calculate CPP using only the base fare or room rate, forgetting to include taxes and fees that you'd pay with cash.
Example: A flight shows $200 base fare + $150 in taxes = $350 total. You calculate based on $200 and think you're getting great value, but you're actually getting much less.
Always use the TOTAL out-of-pocket cash price, including:
If the award also has cash fees, subtract those from the total cash price before calculating CPP.
The Problem: Comparing a basic economy cash fare to a standard award ticket that includes seat selection, or comparing a non-refundable cash rate to a flexible award.
Example: Basic economy costs $150 (no carry-on, no seat selection). The award costs 15,000 points and includes these amenities. You can't compare them directly.
Compare apples to apples:
If you can't find an exact match, adjust your cash price estimate to reflect the value of extra amenities.
The Problem: Calculating value based on what a ticket "should" cost rather than what it actually costs on your travel dates.
Example: You assume a business class seat is worth $3,000 because that's typical, but it's actually on sale for $1,500. Your CPP calculation will be inflated.
Always use the actual current cash price for your specific:
Check multiple sources (airline direct, Google Flights, hotel website) to ensure you have the real price.
The Problem: Not accounting for cash fees that come with award bookings, inflating your perceived value.
Example: A $500 flight costs 30,000 points + $75 in fees. If you calculate ($500 × 100) ÷ 30,000 = 1.67 CPP, you're overestimating. The real value is closer to 1.42 CPP.
Subtract award fees from the cash price before calculating:
Correct Formula: ((Cash Price - Award Fees) × 100) ÷ Points
Using the example above: (($500 - $75) × 100) ÷ 30,000 = 1.42 CPP
The Problem: Forgetting that paying cash earns more points, which has value.
Example: You use 25,000 points for a $300 flight (1.2 CPP - good value!). But if you paid cash, you'd earn 600 points (2x category). Those 600 points are worth about $6-12, reducing your effective savings.
Consider the full picture:
This is most important when the CPP is borderline (around 1.2-1.5 CPP).
The Problem: Claiming a great deal because the CPP is high, even though you'd never actually pay the cash price.
Example: A business class flight costs $8,000 or 100,000 points (8.0 CPP!). But you'd never pay $8,000 cash for it—you'd fly economy for $600. What's it really worth to you?
Consider both objective and subjective value:
A 3.0 CPP redemption you'll enjoy beats an 8.0 CPP redemption you wouldn't book with cash anyway.
The Problem: Getting excited about theoretical high-value redemptions that are rarely available.
Example: Everyone says you can get 10 CPP on first class to Asia, but there's never any availability. You hold your points for years waiting for that redemption instead of using them for good (but not perfect) value.
Balance ideal vs. realistic:
The Problem: Using points when you need the spending or activity to maintain elite status.
Example: You use 50,000 points for a $600 hotel stay (1.2 CPP). But you need 5 more hotel nights to maintain elite status, which gives you free breakfast and upgrades worth $1,000/year.
Before using points, ask:
Sometimes a 1.5 CPP redemption is a bad deal if it costs you status worth more than the savings.
The Problem: Hoarding points indefinitely waiting for the "perfect" redemption, then losing value when the program devalues.
Example: You save 200,000 points over three years. The program then increases award prices by 30%. Your points are now worth 30% less because you waited.
Use a balanced approach:
The Problem: Spending hours optimizing every single redemption, creating decision paralysis.
Example: You spend 10 hours researching to save $50 by finding a slightly better redemption. Your time is worth more than $5/hour!
Use simple rules of thumb:
Save the deep analysis for large redemptions (50,000+ points). For everyday bookings, a quick calculation is enough.
Before finalizing any redemption, ask yourself:
If you can answer these questions honestly, you'll avoid the most common calculation mistakes and make smarter redemption decisions!