How to use the points vs cash travel calculator
- Enter the cash price of the flight or hotel.
- Enter the points price and any cash taxes and fees you still pay when you use points.
- Enter what you value one point at, in cents. This is your own number, and the 1.2 shown is only an example.
- Read the value you get per point on this booking and whether the award costs you less than paying cash.
Formula
Cash saved = cash price - cash fees on the award
Value per point = cash saved / points x 100 cents
Award cost at your value = points x your value per point + cash fees
Break-even points price = cash saved / your value per point
If the value you get per point is higher than the value you place on a point, using points is the better deal. The break-even points price is the number of points at which the two options cost the same to you.
A $420 flight or 25,000 points plus $28
Using points saves 420 - 28 = $392 of cash. Spread over 25,000 points that is 1.568 cents per point. If you value a point at 1.2 cents, the award costs you 25,000 x $0.012 + $28 = $328, which is $92 less than the $420 cash price.
If you valued a point at 2 cents, the award would cost 25,000 x $0.02 + $28 = $528, which is $108 more than paying cash, and you should pay cash. The break-even points price at 1.2 cents is 392 / 0.012 = 32,667 points.
What is a point worth to you?
A point has no fixed value. Think about what you paid for it, what you could get for it in other ways and how soon it expires. If you bought points at 1 cent each, any deal above 1 cent per point is a good one by that standard. If you would never use the points otherwise, their value to you may be lower. Pick the value you would honestly accept.
What the comparison leaves out
Paying cash may earn points or status credit that award bookings do not, and award tickets often come with different cancellation and change rules. Availability on the date you want also matters more for awards. These are real differences that a single price comparison cannot show.
To see how many points a card earns use the Credit Card Rewards Calculator, to add fees to a trip use the Baggage Fee Calculator and to plan the whole trip use the Trip Budget Planner.
Assumptions and limits
- The cash price and the award are for the same trip, dates and class of service.
- Your value per point is a number you choose, not a standard value.
- Cash fees on the award are paid in cash in addition to the points.
- Nothing is uploaded. Calculations run in your browser.
Frequently asked questions
How do I calculate the value of a point?
Subtract the cash fees you still pay from the cash price, divide by the number of points and multiply by 100 to get cents per point. That tells you what each point buys on this booking.
What is a good value per point?
There is no standard. A good value is one above what a point is worth to you, for example the price you paid for it or the best alternative use you have. Compare the booking value with your own number.
Why are taxes and fees subtracted?
Because you pay them in cash either way. The points only replace the rest of the price, so the cash saved is the cash price minus the fees on the award.
Should I always pay cash if the points deal is worse?
Not always. Points can go unused or lose value, and cash fares earn points on some programs. Use the comparison as one input, along with flexibility and availability.