Enter the cash value of the item or service and the number of points spent to determine the cents per point value. This calculator helps you understand the value of reward points or miles.
Cents Per Point Formula
The following formula is used to calculate the cents per point value.
CPP = (CV / PS) * 100
Variables:
- CPP is the cents per point value
- CV is the cash value of the item or service ($)
- PS is the number of points spent
To calculate the cents per point value, divide the cash value of the item or service by the number of points spent, then multiply by 100 to convert to cents.
What is Cents Per Point?
Cents per point (CPP) is a way to measure the value of reward points or miles earned through credit cards, loyalty programs, or other promotional offers. It represents the value of each point or mile when redeemed for goods, services, or travel. Calculating the CPP helps consumers make informed decisions about the best way to use their points and whether a particular rewards program offers good value.
How to Calculate Cents Per Point?
The following steps outline how to calculate the Cents Per Point.
- First, determine the cash value of the item or service (CV) in dollars.
- Next, determine the number of points spent (PS).
- Next, gather the formula from above = CPP = (CV / PS) * 100.
- Finally, calculate the Cents Per Point (CPP).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Cash value of the item or service (CV) = $250
Number of points spent (PS) = 20,000 points
