💳Points vs cash: what is a point worth?
Points aren’t “free money” — they have a measurable value in cents per point. Here is the formula, when points win, and a worked example.
Updated: 2026-06-18
The formula: cents per point
Cents per point = (cash price − cash still paid on the award) ÷ points used × 100
The result is the value you actually get per point. Compare it to a “baseline” value for that points currency to decide.
Baseline values (2026)
NerdWallet’s valuations are based on real award bookings (not theoretical maximized values), so they make a solid, conservative baseline:
| Points currency | Approx. baseline |
|---|---|
| Major airline miles | ~1.2–1.6¢ |
| Flexible bank points (Chase / Amex) | ~2¢ |
| Hotel points (varies widely) | ~0.5–2¢ |
Values drift over time and by program — treat these as guidelines, not guaranteed numbers.
A worked example
An $800 cash ticket is available for 60,000 points + $50 in taxes. Value: (800 − 50) ÷ 60,000 × 100 = 1.25¢ per point. That’s within the baseline for airline miles — fine, but not a standout deal.
Those same 60,000 points on a $3,000 business-class ticket would yield ~4.9¢ per point — that’s where points win big.
When points win, when cash wins
- Points win: expensive tickets (business class, long-haul, sold-out peak dates) where value per point beats the baseline.
- Cash wins: cheap economy fares, sales, or when value per point falls below the baseline — keep the points for later.
- Don’t forget: award tickets are often more flexible to cancel/change — sometimes worth accepting a slightly lower value.
Run the points-vs-cash calculator →
Enter the cash price, points and program — the WizeTravel tool returns the cents-per-point value and a clear recommendation.
Frequently asked questions
How do I calculate cents per point?
(cash price − cash still paid on the award) ÷ points × 100. E.g. ($800 − $50) ÷ 60,000 × 100 = 1.25¢.
How much is an airline mile worth?
Per NerdWallet (2026), most miles are worth ~1.2–1.6¢; flexible bank points are often ~2¢.
When do points beat cash?
When value per point clearly beats the baseline — mainly on business-class, long-haul and peak-date awards.
Should I redeem points for economy?
Often less worthwhile — cheap economy fares give low value per point. Save points for expensive tickets.
Do taxes and fees change the value?
Yes. Award tickets still charge taxes/fees in cash — subtract them before dividing, or you’ll overstate the value.
Sources
ℹ️ These are general estimates based on public research — not advice. Prices, points and terms change; verify with the airline / provider before you book.