There’s one number that tells you whether to spend your points or save them, so plug in the prices and I’ll do the math for you (this is the part I used to do on the back of a receipt).
the calculator
Run the Numbers
Enter the cash price and the points price for the same trip, and the calculator will tell you your value per point and whether it’s a good deal or not.
Cash price of the trip
$
Points required
Taxes & fees (optional)
$
Which points program?
Fill in the cash price and points above to see your answer.
the one rule
You divide the cash price (minus taxes) by the points required and that’s your cents per point, so if you’re above your program’s target go ahead and use them, and if you’re below it save them for a better deal down the road.
understand the number
What “Cents Per Point” Really Means
A point has no fixed value, it’s worth whatever you can get out of it, so cashed out for a statement credit a Chase point is worth about a penny, and transferred to a hotel and used on a nice room that same point might be worth 3 or 4 cents, which took me a while to really believe when I started.
The cents-per-point number tells you where this particular redemption falls on that scale, and every program has a rough target (the value you can realistically get when you’re being smart about it), so if your redemption beats the target it’s a good use of points, and if it falls short you’re better off paying cash and saving your points for something better.
(Cash price − Taxes) ÷ Points required × 100 = cents per point
So for example, say it’s a $900 flight that costs 60,000 Chase points with $50 in taxes, and that works out to ($900 − $50) ÷ 60,000 × 100 = 1.42¢, and Chase’s target is 2.1¢, so that’s below the target and I’d save the points on that one.
2¢+Use your points
1.2 to 2¢Borderline, your call
<1.2¢Pay cash, save points
real examples
See It on Real Trips
The same math, applied to trips families like ours really take.
Hawaii • Chase URRound-trip economy to Maui, 4 peopleCash: $4,200 • Points: 120,000 • Taxes: $180 $4,020 of value ÷ 120,000 points = 3.35¢ per point
3.35¢Use the points
Vegas flight • Chase URRound-trip to Las Vegas, 2 peopleCash: $180 • Points: 20,000 • Taxes: $40 $140 of value ÷ 20,000 points = 0.70¢ per point
0.70¢Pay cash
Europe hotel • Hyatt3 nights at a Hyatt in ParisCash: $1,050/night = $3,150 • Points: 60,000 • Taxes: $0 $3,150 ÷ 60,000 points = 5.25¢ per point
5.25¢Use the points
Road trip hotel • Marriott2 nights at a Marriott CourtyardCash: $240 total • Points: 30,000 • Taxes: $0 $240 ÷ 30,000 points = 0.80¢ per point
0.80¢Probably skip
Family vacation • SouthwestRound-trip for a family of 5 to FloridaCash: $1,750 • Points: 90,000 • Taxes: $250 $1,500 ÷ 90,000 points = 1.67¢ per point
1.67¢Use the points
Gift card redemption • Chase UR$500 Amazon gift card via portalCash value: $500 • Points: 62,500 (0.8¢ each) $500 ÷ 62,500 points = 0.80¢ per point
0.80¢Never do this
the shortcuts
When to Always Use Points, and When to Never
The calculator handles the close calls, and these are the easy ones you don’t even need to calculate.
Use points when…
The flight or hotel would be really expensive, like business class or peak season or international, because points do the most for you right where cash hurts the most.
You’re above 2¢ per point, because that’s the sweet spot where your points are doing real work for you.
You’re booking Hyatt hotels, Southwest flights for a big family, or international business class via United or Virgin Atlantic.
The trip would otherwise stretch or stress the budget, because honestly points are there for the trips you wouldn’t take any other way.
Save points when…
The flight is cheap, because if you can fly somewhere for $150 cash then paying 20,000 points is a terrible trade, and you should just let a cheap flight be a cheap flight and pay for it.
You’re below 1.2¢, because you’re leaving value behind every time you redeem at that level and it adds up.
You’re converting to cash or gift cards or merchandise, which is almost always the worst possible use of points (I know, it’s tempting).
You don’t have a trip in mind yet, so keep them flexible in the bank’s program, because they’ll be worth more once you have a real destination picked out.
the honest truth about points math
You don’t have to squeeze the maximum value out of every single redemption, and a 1.8¢ trip that gets your family to the beach is SO much better than perfect points sitting unused in an account somewhere. So use the calculator as a guide, get close to the target, and then go take the trip.