Accumulating miles is a popular way for travellers to get rewards for their everyday spending. People often earn miles by using credit cards for purchases, booking flights, or shopping with certain retailers. It’s exciting to use these miles toward flights, allowing travellers to save money and enjoy perks like upgrades or free trips. However, it’s essential not to overspend on credit card fees or purchase fees when acquiring these miles, as this can negate the benefits.
For example, when I ran my business, I paid for expenses anyway; so I took advantage of this opportunity to accumulate points. I negotiated with all my suppliers to waive any credit card fees, which meant I could earn miles without the added surcharges. Additionally, I gained points through live eftpos for every dollar my customers spent, which was a massive bonus.
A point redemption value calculator helps you figure out how much your points or miles are worth when you redeem them for a product, service, or flight. Understanding how to calculate point value can help you make the most of your rewards and ensure you’re getting the best deal when redeeming them.
How To Calculate Point Redemption Value
In the simplest of terms, to calculate point redemption value, you simply divide the cash price of the product or service you’re redeeming by the number of points or miles you’re using and multiply it by 100. This will give you the value of each point or mile, which is usually expressed in cents per point. Knowing this value will help you compare different redemption options and choose the best one.
Calculate Cents Per Point
One way to figure out how valuable your points are is to calculate cents per point. For example, if a flight costs $200 and requires 20,000 miles to book, you would divide $200 by 20,000 miles then multiply x 100. This gives you a value of 1 cent per mile.
A cents per point calculator can make it easier to quickly see how much your points are worth. You just enter the cash price and the number of points, and the calculator will give you the value in cents per point. This is a simple tool to help you compare different options when using points for travel or purchases.
How Much Are Points and Miles Worth?
Thanks to the travel gurus and flight enthusiasts who have done the hard work, we have access to airline points valuations that show how much a mile is worth for each airline. Different sites may display slightly different results, but the variations are usually minor. The methodology used to calculate these values may also differ, but we don’t want to get into the nitty gritty and complicate things too much. I’ll list just a few examples here to give you an idea of what to look for.
American Airlines 1.6 cents
Asia Miles 1.8 cents
Delta 1.2 cents
Emirates 1.2 cents
Etihad 1.2 cents
Singapore 1.9 cents
Qantas 1.9 cents
Qatar 1.6 cents
United 1.2 cents
Velocity 1.9 cents
How to Calculate Point Value
Knowing how to calculate point value is important if you’re trying to get the most out of your rewards program. Use the calculator below to quickly determine whether you’re getting good value when redeeming points or miles. Always look for redemption options that give you a higher point value.
Here’s a simple way to think about it:
1. You’re getting a good deal if the points you earn, cost less than what they are worth;
AND
2. You’re getting good value when you use your points to redeem something worth more than the points you spent.
Here’s how it works:
- Earning Miles:
If Emirates Skywards Miles are worth 1.2 cents per mile, you want to make sure that when you earn or buy those miles, it costs you less than 1.2 cents per mile. For example, if you’re able to buy or earn miles at 1 cent per mile, you’re getting a good deal because you’re paying less than their value. - Redeeming Miles:
When you redeem those miles, you want the value of what you’re getting to be more than 1.2 cents per mile. The higher the value, the better the deal.
The lower the cost to earn the miles and the higher the value when you redeem them, the better deal you’re getting!
I found that a mile redemption value above 3.0 cents is good, and over 5.0 cents is great. The value of miles is subjective and depends on what you think is important. However, I like to have a benchmark to help me decide.
Many people however are not aware of redemption values and believe they are getting a good bargain because it’s “free”.
Every time you trade your hard-earned points for kitchen gadgets, a suitcase weeps in the corner!
I understand value is subjective but I never, ever use my miles for shopping.
Point Redemption Calculator:
This tool helps you find out the value of your points when redeeming them for flights. Here’s how to use it:
1. Go to your frequent flyer program and select a flight.
2. Enter the total price of the ticket in the first field (in currency/cash value).
3. Input the number of miles needed to get a reward ticket in the second field.
4. Enter any extra charges, like fuel surcharges or taxes, in the third field (if there are none, just put “0”).
5. The last field will show you the redemption value in cents.
| In general I found that anything above 3.0 cents is good value & over 5.0 cents great value. |
You can repeat this process to check the value of other flights as well as hotels, car hires and anything else you are redeeming.
Which is the best airline to accumulate points with?
There isn’t a simple answer to this question because the value of points can be subjective. I believe it’s smart to have points in several programs. For example, it’s frustrating to collect miles with an airline that rarely offers award seats. Qantas is one of those frequent flyer programs. The new classic plus reward system has once again missed the mark.
Emirates may not be the best in terms of high taxes and carrier-imposed fees when redeeming, but they almost always have availability, so I keep some points with them. In fact knowing the emirates game changer routes and travelling on board their first class suites is a treat in the skies. The use of such high standard lounges is major cities is an added bonus. You always feel like you are getting bang for buck the minute you walk into the Emirates Lounge at Melbourne International Airport.
I also find KrisFlyer offers great value. For flexibility, I save most of my points with Amex Membership Rewards, which I can transfer to airlines like Cathay Asia Miles, Qatar, or Etihad. You can also transfer Amex points to Krisflyer to book flights on airlines partners where this is no direct transfer available from amex. For example you cannot transfer points from Amex to Turkish Airlines directly. You can however transfer the points into Krisflyer and make your booking there. This is because they are part of the Star Alliance program.
Furthermore, since discovering an easy way to find Virgin Velocity Reward Seats, I also keep a pool of miles with them.
Amex Membership rewards program is beneficial because you are able to transfer to a partner airline when and where you see fit. It has great flexibility. For example if you want to fly to Europe and Emirates has a deal you can hop onto Amex and transfer to Emirates with the points landing instantly.
Summing Up
Understanding the value of your points and miles is essential for maximizing your rewards and making the most of your travel experiences. With the help of tools like the point redemption value calculator, you can easily evaluate different flight options and ensure you’re getting the best value for your hard-earned miles. Remember, while it’s tempting to spend points on everyday items, saving them for flights or upgrades can lead to more exciting adventures.
There’s no greater reward than travelling almost free on business or first class. I have been doing it for the last 20 years and i haven’t missed a flight.
And if you’re wondering what to pack, feel free to download this ultimate travel packing list for some helpful tips you may not have considered!
Happy travels!
