Calculate the cents-per-point value of a rewards redemption and decide whether to redeem points or pay cash.
Redemption Value Formula
CPP = (P - F) / N * 100
Where:
CPP is the redemption value of each point, measured in cents per point.
P is the cash price you would otherwise pay for the same booking, in dollars.
F is the taxes and fees you must still pay in cash when you book with points, in dollars.
N is the number of points the award costs.
Subtracting the cash fees from the cash price gives the real dollar value your points buy you. Dividing that by the number of points and multiplying by 100 converts the result to cents per point, so you can compare any redemption on the same scale. If you only want the plain cash value of a points balance, multiply the points by your value per point and divide by 100:
V = Q * R / 100
Where V is the estimated cash-equivalent value in dollars, Q is the number of points you hold, and R is the value of each point in cents.
Illustrative Point Values and Rating Scale
The values below are hypothetical comparison inputs, not current program rates or guaranteed values. American Express and Chase state that redemption values vary by option. Check the actual terms and prices for your booking.
| Program or redemption | Illustrative input (cents per point) |
|---|---|
| Transfer scenario A | 2.0 |
| Transfer scenario B | 2.0 |
| Hotel scenario | 1.5 to 1.8 |
| Travel portal scenario | 1.0 to 1.5 |
| Cash or statement-credit scenario | 1.0 |
| Gift-card or merchandise scenario | 0.5 to 0.8 |
This optional rating scale is illustrative. The calculator compares against your entered baseline instead:
| Cents per point | Rating |
|---|---|
| Under 1.0 | Below illustrative 1.0 threshold |
| 1.0 to less than 1.5 | Average |
| 1.5 to less than 2.0 | Good |
| 2.0 and above | Excellent |
Example Problems
Example 1. A flight costs $400 in cash, or 25,000 points plus $11.20 in taxes and fees. Subtract the fees from the cash price to get $388.80 of value. Divide by 25,000 points and multiply by 100, which gives 1.56 cents per point. That is above a 1.5 cent baseline, so it exceeds that assumed baseline. Rewards earned, cancellation terms and availability can change the decision.
Example 2. You hold 60,000 points and value each one at 1.5 cents. Multiply 60,000 by 1.5 and divide by 100 to get a cash value of $900.
FAQ
What is a good cents per point value? There is no universal good value. The displayed rating table is only an illustration; use your own baseline and the actual program redemption terms.
Should I redeem points or pay cash? Compare the cents per point you get to the baseline value you set. A result above your baseline favors points on this value comparison; below it favors cash, and equality is a tie. Also consider rewards earned, cancellation terms, availability and your preferences.
Where do I find the cash price and points required? Look up the same flight, hotel night, or item two ways: the normal cash price, and the points price shown in your rewards account. Enter both, plus any cash taxes or fees the award still charges, to see what your points are really worth.
