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Points Valuation Formula:
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The Points Guy Point Calculator helps determine the value of loyalty program points by calculating how many cents each point is worth based on the cash value of a redemption minus any applicable fees.
The calculator uses the point valuation formula:
Where:
Explanation: This calculation helps you determine the actual value you're getting from your points by accounting for both the cash equivalent and any extra costs.
Details: Understanding the true value of your points is crucial for maximizing rewards, making informed redemption decisions, and comparing different loyalty program offers.
Tips: Enter the cash value of your redemption in USD, any additional fees in USD, and the number of points required. All values must be valid (positive numbers, points > 0).
Q1: What is considered a good cents per point value?
A: Generally, 1 cent per point is considered baseline. Values above 1.5-2 cents are typically good, while values below 0.7 cents may indicate poor redemption choices.
Q2: Should I include taxes in the cash value?
A: Yes, include all costs that would be included if paying cash, including taxes and mandatory fees, to get an accurate comparison.
Q3: How do I find the cash value of a points redemption?
A: Check the cash price for the same product or service on the provider's website or through other booking platforms.
Q4: Are there times when points are worth more than cash?
A: Yes, during promotions, for premium cabin upgrades, or for experiences that are difficult to book with cash, points can sometimes provide exceptional value.
Q5: Should I always aim for the highest cents per point value?
A: While higher values are generally better, also consider your personal travel preferences, availability, and whether the redemption meets your specific needs.