Points & Miles
How I evaluate a points redemption.
A point is not worth the same thing in every program. I use cents per point (CPP) as shorthand, then compare it with that program’s published value, the cash alternative, and what I would realistically choose to pay.
How to calculate cents per point
Standard redemption value = ((comparable cash price − award taxes and fees still paid) ÷ points or miles redeemed) × 100.
The × 100 converts dollars per point or mile into cents per point or mile.
With a transfer bonus: bank points transferred = award points required ÷ (1 + transfer bonus rate). Effective value per bank point = (cash value replaced ÷ actual bank points transferred) × 100.
Worked standard example: ($1,000 − $50) ÷ 50,000 × 100 = 1.90¢ per point.
Worked transfer example: 50,000 bank points × 1.3 = 65,000 partner points, a 30% bonus. Effective bank value: ($1,000 − $0) ÷ 50,000 × 100 = 2.00¢ per bank point.
This example assumes a 1:1 base transfer rate before the bonus.
I keep both numbers because they answer different questions: How good was the airline or hotel booking? And what were my bank points actually worth?
My quick CPP scale
This is the quick scale I use to label a redemption Poor, Average, Good, Great, Exceptional before I check the published value for that specific program.
- < 1.0¢/point — Poor
- 1.0–1.49¢/point — Average
- 1.5–1.99¢/point — Good
- 2.0–2.99¢/point — Great
- ≥ 3.0¢/point — Exceptional
Source note: This scale is my Engineering My Best Life synthesis, informed by How to Win at Travel by Brian Kelly, founder of The Points Guy (© 2025). It is not a verbatim scale from the book. I still compare each result with that program’s published benchmark before deciding.
The reality check
Points have opportunity cost: points I spend now can’t be used later. I consider what else they could book, transfer flexibility, award restrictions, and whether cash is the stronger choice.
CPP measures the redemption. Whether I book it depends on that program’s published benchmark, a realistic cash alternative, and the experience I want.
This is how I evaluate my own redemptions. It is not financial advice, and points values and program rules change. See Editorial Standards.
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