When booking flights, hotels, or other travel expenses, you often face a common dilemma: Should you pay with points or cash? A Points vs. Cash Calculator helps determine whether redeeming travel points or paying in cash provides the best value.
By understanding how to calculate point values, redemption rates, and opportunity costs, you can make smarter travel decisions and maximize the value of your rewards.
- In this guide, we’ll cover:
How Points vs. Cash Calculator works
How to calculate the value of your points
When to redeem points vs. pay with cash
Best credit cards and loyalty programs for points redemption
How Do Points vs Cash Calculator Work?
- A Points vs. Cash Calculator helps you compare:
The cash price of a flight or hotel vs. the points required for redemption.
The value per point to determine if redeeming is a good deal.
The opportunity cost of using points instead of saving them for future redemptions.
Formula for Calculating Point Value:
\text{Point Value} = \frac{\text{Cash Price} – \text{Taxes & Fees}}{\text{Number of Points Required}}
- Higher point value (above average rate) = Good use of points.
Lower point value (below average rate) = Paying with cash may be better.
What’s the Value of Travel Points?
The value of airline miles, hotel points, and credit card rewards varies based on the loyalty program and redemption method.
Average Point Values (2024 Estimates):
| Program | Average Point Value |
| Chase Ultimate Rewards | 1.5¢ per point |
| American Express Membership Rewards | 1.5¢ per point |
| Capital One Miles | 1.4¢ per point |
| United MileagePlus | 1.3¢ per mile |
| Delta SkyMiles | 1.2¢ per mile |
| Southwest Rapid Rewards | 1.4¢ per point |
| Hilton Honors | 0.6¢ per point |
| Marriott Bonvoy | 0.8¢ per point |
| World of Hyatt | 1.7¢ per point |
- Best Programs for Redemptions:
Hyatt Points (1.7¢ per point) – One of the most valuable hotel programs.
Chase Ultimate Rewards (1.5¢ per point) – Flexible redemptions for flights, hotels, and transfers.
Amex Membership Rewards (1.5¢ per point) – Great for international business-class flights.
When to Use Points vs. Pay with Cash?
- Best Times to Use Points
- When the value per point is higher than the average redemption rate.
For expensive last-minute flights or luxury hotels where cash prices are high.
For international business or first-class flights where points offer great value.
When you have expiring points.
Example: If a $1,000 flight costs 50,000 points, the value is 2¢ per point, which is a great redemption.
When to Pay with Cash Instead
- When the redemption value is lower than the average point value.
For cheap economy flights or budget hotels where cash prices are low.
If you can earn bonus points by paying with a rewards credit card.
When saving points for future premium redemptions.
Example: If a hotel stay costs 30,000 Hilton points or $150 cash, the redemption value is only 0.5¢ per point—paying cash is the better deal.
Using Points vs. Cash Calculator (Example Calculation)
Example: Flight from New York to Los Angeles
- Cash Price: $500
Miles Required: 35,000 United MileagePlus miles
Taxes & Fees: $11.20
Point Value=500−11.2035,000=1.4¢ per mile\text{Point Value} = \frac{500 – 11.20}{35,000} = 1.4 \text{¢ per mile}
Since 1.4¢ per mile is above United’s average value (1.3¢), this is a decent redemption.
Best Credit Cards for Earning & Redeeming Points
Best Flexible Points Credit Cards
- Chase Sapphire Preferred – 1.5¢ per point value, great for travel redemptions.
Amex Platinum – Premium travel perks and high-value airline transfers.
Capital One Venture X – 1.4¢ per mile with simple redemptions.
Best Airline Credit Cards
- United Explorer Card – Bonus miles and United-specific perks.
Delta SkyMiles Platinum – Earns SkyMiles with airline benefits.
Best Hotel Credit Cards
- World of Hyatt Credit Card – High-value Hyatt points (1.7¢ per point).
Hilton Honors Surpass – Great for Hilton stays, but lower redemption value.
Pro Tip: Use cards that offer transfer partners for better point value!
Tips to Maximize Points Value
- Transfer points to airline and hotel partners instead of using them for statement credits.
Look for award travel sweet spots (e.g., 12,500 Avios for short-haul flights).
Use points for business-class flights or luxury hotels to maximize redemption value.
Compare points vs. cash using a calculator before booking.
Final Thought: The best way to use points is for high-value redemptions, not just to save cash.
Conclusion
A Points vs. Cash Calculator helps you make smarter redemption choices. By comparing cash prices, points required, and redemption values, you can maximize your rewards and travel more for less.
- Key Takeaways:
Use points when the redemption value is higher than the program’s average.
Cash is better for low-cost flights or budget hotels.
Flexible rewards programs like Chase Ultimate Rewards offer the best redemptions.
A Points vs. Cash Calculator simplifies travel decisions!
Ready to start maximizing your travel rewards? Use a calculator before your next redemption!
FAQs
1. What is a Points vs. Cash Calculator?
A tool that helps determine whether redeeming points or paying cash gives better value.
2. How do I calculate if using points is worth it?
Use the formula:
Point Value=Cash Prize−TaxesPoints Required\text{Point Value} = \frac{\text{Cash Price} – \text{Taxes}}{\text{Points Required}}
If the value is higher than the program’s average redemption rate, it’s a good deal.
3. Should I always redeem points for travel?
Not always! Sometimes, paying with cash and earning more points is a better long-term strategy.
4. What’s the best way to maximize travel points?
Use transfer partners, book premium flights, and avoid low-value redemptions.
5. Are all travel points worth the same?
No! Some points (e.g., Hyatt, Chase, Amex) have higher average values than others (e.g., Hilton).
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