How do credit card miles work and what are they worth?

Our current points valuation for credit card, hotel and airline loyalty programs.

Last updated:

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Between changing airfares and changing redemption and earning rates by the bank, point valuations for loyalty programs are in constant flux.

To help you get a sense of the general value of the miles and points offered across loyalty programs, we’ve calculated the average value per point across airline, credit card and hotel loyalty programs.

How do airline miles work?

At the most basic level, airline miles and other loyalty currencies are earned when you spend money on eligible earning categories in a program. You can redeem earned miles and points on a variety of services or items, such as flights, hotel stays or merchandise.

Miles valuation for airline loyalty programs

Loyalty programAverage redemption value in cents per mile
American Airlines1.5
Alaska Airlines Mileage Plan1.8
Avianca LifeMiles1.5
Delta SkyMiles1.4
Hawaiian Airlines1.2
JetBlue TrueBlue1.4
Southwest Rapid Rewards1.7
United MileagePlus1.2
Virgin Atlantic Flying Club1.5

Best airline rewards program

Points valuation for hotel loyalty programs

Hotel loyalty programPoint valuation in cents per point
Choice Privileges0.6
Hilton Honors0.4
IHG Rewards Club0.7
Marriott Bonvoy0.9
Radisson Rewards0.4
Starwood Preferred Guest (Now Marriott Bonvoy)0.9
World of Hyatt2.0
Wyndham Rewards0.8

Best hotel rewards program

Points valuation for credit card loyalty programs

Credit card loyalty programPoints valuation in cents per point
American Express Membership Rewards2.0
Bank of America1.0
Capital One Rewards1.5
Chase Ultimate Rewards2.0
Citi ThankYou Rewards1.5
Discover1.0

A note about credit card point values

It’s tough to pin down valuations of credit card points. That’s because the most valuable use of credit card points — transfers to travel partners — relies heavily on the current value of that travel partner’s mile or point.

For example, the average Chase point value is 1 cent apiece when redeemed on cashback or gift cards through the Chase shopping portal. However, you could double that value if you transfer points to a program such as World of Hyatt as Chase points transfer at a 1:1 ratio and World of Hyatt points, on average, are worth 2 cents each.

How we calculated point values

To calculate our point values, we averaged the redemption value for all redemption options in a given loyalty program. Not all loyalty programs have multiple redemption options. For example, Discover points are worth 1.0 cent per point because the few redemption options available all give a value of 1.0 cent per point.

Others, like airline programs, wildly vary between the lowest and highest redemption values. While we currently list most airline miles around an average of one to two cents apiece, it’s possible to find even higher value with a little research — or lower if you’re not careful.

How to calculate the value of a mile or point

Calculating the redemption value of your miles is relatively simple once you know how to do the math. In most cases, you’ll need to divide the cost of the product in cash by the number of miles or points it would take for redemption.

For example, if the cost of a one-way flight in cash is $500 and the cost in miles is 45,000:
500 / 45000 = 0.011
The cost in cash divided by the cost in miles comes out to about 1.1 cent per point.

This same calculation holds true for merchandise. For example, if a wireless speaker normally costs $400 but you can redeem 60,000 points to purchase it, then:
400 / 60000 = 0.006
Each point would come out to a value of 0.6 cents apiece — not the best use of your hard earned points.

How to pick a loyalty program

With so many loyalty programs available, it can be tough to pick one. Here are a few considerations to help you narrow your choices.

  • Do you value flexibility? Credit card loyalty programs typically offer more flexibility in how you redeem your points. Some will also let you donate or receive miles with another account.
  • Do you have a favored airline or hotel? If you travel often and prefer the services of a particular airline or hotel, you might get the most value out of the benefits and perks of their specific loyalty program.
  • How do you spend? No matter which loyalty program you choose, you’re going to need to spend money to earn miles. Make sure to choose a program and credit card that offers you the best opportunities to earn.

Where should I spend my points or miles?

There are often a variety of ways to redeem your points or miles. Here are a few common options and their typical values.

RedemptionTypical value per point or mile
Point or mile transfersUp to 2 cents
Travel0.7 to 1.5 cents
Gift cards0.7 to 1 cents
Cash back/statement credit0.5 to 1 cents
Shopping with rewards0.5 to 0.8 cents

Do my points expire?

If you’re hunting for a long term rewards program to take part in, you’ll want to look at whether your hard-earned points have an expiration period. The following reward points and miles won’t expire so long as your account is in good standing:

Credit card points that don’t expire

  • Chase Ultimate Rewards
  • Amex Membership Rewards
  • Citi ThankYou points
  • Discover it Rewards
  • Capital One Rewards

Airline miles that don’t expire:

  • Delta SkyMiles
  • United MileagePlus

Hotel points that don’t expire:

  • Best Western Rewards

All other reward programs require you spend or earn your points within a certain time period in order to not forfeit your collection. Read more about airline reward programs, credit card reward programs and hotel reward programs for more information.

What’s the most valuable rewards program?

You might be surprised at the value a rewards program can deliver — especially if you transfer your points or miles and do your research to get the best redemptions. However, here’s a general ranking of the major programs, from most valuable to least.

Rewards programWhy it shines
1. Amex Membership RewardsMore transfer partners than Chase Ultimate Rewards. Lets you transfer points to airline and hotel programs. The Platinum Card® from American Express offers stellar rewards on eligible flights.
2. Chase Ultimate RewardsExcellent redemption value on travel booked through Chase Ultimate Rewards with a Chase Sapphire® card. Lets you transfer points to airline and hotel programs.
3. Citi ThankYou RewardsSolid roster of transfer partners. Points from the Citi Premier℠ Card are worth 1.25x when redeemed for airfare through the ThankYou Travel Center.
4. Capital One RewardsSolid roster of transfer partners. Offers an excellent flat-rate travel card.
5. Bank of AmericaSimple 1-cent-per-point redemption rate. Offers a $95-a-year travel card with a 1.5x-point base rewards rate on top of 2x points on travel and dining — unusual for a travel card.
6. DiscoverSimple 1-cent-per-mile redemption rate.

Compare rewards credit cards

Name Product Welcome offer Rewards Annual fee Filter values
$150 after spending $1,000 in the first 3 months
2% at US gas stations and select US department stores, 3% at US supermarkets on up to $6,000 per year, then 1% after that and on all other purchases
$0
Earn a $150 bonus statement credit after you spend $1,000 on purchases in the first 3 months. Rates & fees
30,000 points after spending $2,000 in the first 3 months
3x Membership Rewards® points on all eligible travel, 3x points at restaurants and 1x points on all other purchases
$150
Earn 3x Membership Rewards® points on all eligible travel, 3x points at restaurants and 1x points on all other purchases. Rates & fees
20,000 miles after spending $1,000 in the first 3 months
1.25x miles on all purchases and 10x miles at hotels.com/venture
$0
Earn 20,000 bonus miles once you spend $1,000 on purchases within the first 3 months from account opening.
60,000 points after spending $4,000 in the first 3 months
2x points on travel and dining and 1x points on all other purchases
$95
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months.
$150 after spending $500 in the first 3 months
1.5% cash back on all purchases
$0
Earn a $150 signup bonus after spending $500 in the first 3 months from account opening.

Compare up to 4 providers

Bottom line

Let these point valuations serve as a guideline as you make the most of your loyalty program rewards. Remember these point values are averages — with a little research, you can get even more from your miles.

Compare rewards credit cards to start earning toward your favorite loyalty rewards program.

Frequently asked questions

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site