Points value calculator

What is a redemption really worth per point? Different CPPs based on your needs.

The redemption

For your reference; shown above the results.
Points or miles the program deducts.
pts
Cash you still pay on the award. Blank counts as $0.
$
Taxes included. Use the exact flight or room, or the cheapest option in the same class that day if it costs less. If the award seat isn't sold for cash, use the same-class option.
$

What you would buy with cash instead

The cheapest cash option that gets you the same result, such as economy instead of business or a standard room instead of a suite. Blank uses the same-class price.
$

Moving points from your card

Program points received per card point, before any bonus.
: 1
Promotional bonus on the transfer. Effective ratio = ratio × (1 + bonus).
%
Transfers move in 1,000-point blocks Card points are rounded up to the next 1,000 for both awards.

Points you give up

Card points per $1 you would earn paying cash for the realistic alternative with the card the points come from.
x

Alternative as an award (optional)

Points to book the realistic alternative as an award.
pts
Blank uses the award taxes above.
$

This award against the alternative award

Both awards are valued at the realistic cash price, net of each award's own taxes, so the comparison shows how many points each route burns for the same outcome.

Sensitivity

How the value moves when the transfer bonus, earn rate or realistic price changes. Your current scenario is outlined.

Net effective CPP (¢ per card point)

Transfer bonus down the side, cash-spend earn rate across the top.

Effective CPP (¢ per card point)

Transfer bonus down the side, realistic price as a share of the same-class price across the top.

Break-even realistic price

The realistic cash price this award needs to reach each target net value, with your current card points and earn rate.

How the numbers are calculated

Notation

R
Award points the program deducts
P
Same-class cash price, taxes included
F
Award taxes and fees paid in cash (default 0)
A
Realistic cash alternative (default P)
r, b
Transfer ratio (default 1) and transfer bonus (default 0%)
k
Transfer block: 1,000 when transfers move in 1,000-point blocks, else 1
O
Card (origination) points used = ROUNDUP(R / (r × (1 + b)) / k) × k
m
Card points earned per $1 of cash spend (default 1)
E
Card points given up = m × (A − F)
Ra, Fa, Oa
Alternative award points, its taxes (default F) and its card points

Formulas (cents per point)

Redemption CPP, same-class
(P − F) / R × 100
Redemption CPP, realistic
(A − F) / R × 100
Origin-point CPP, same-class
(P − F) / O × 100
Effective CPP
(A − F) / O × 100
Net effective CPP
(A − F) / (O + E) × 100
Marginal upgrade CPP
[(P − F) − (A − Fa)] / (O − Oa) × 100
Implied upgrade cost
(O − Oa) × alternative Effective CPP / 100, compared with P − A

Design choices

Same-class price
The exact award fare can sit far above an equivalent option that day, or not be sold at all. Nobody rational pays more than the cheapest same-class substitute.
Realistic price
Value is what you would otherwise have paid, not the sticker price of something you would not have bought.
Net of taxes
Cash paid on the award is spent either way, so only A − F is cash saved.
Card points
Points are usually earned on a card and spent with a partner; the ratio, bonus and block rounding change how many are used.
Points given up
Paying with points gives up the points spent and the points cash would have earned. Cash is charged to the card that earns the points, so E is already in card points and is added to the denominator.

Limitations

Taxes
Points earned are treated as untaxed.
Elite status
Status credit earned on cash bookings is not valued.
Co-branded cards
If cash spend would earn program points instead, convert them to card points first (divide by the transfer ratio).
Block rounding
Excess points left in the program account count as used: they are less flexible than card points and may expire.