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

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

Best airline rewards program

Points valuation for hotel loyalty programs

Best hotel rewards program

Points valuation for credit card loyalty programs

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 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.

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, hotel reward programs and the top credit card 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.

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Name	Product	Welcome offer	Rewards	Annual fee	Filter values
Blue Cash Preferred® Card from American Express		$300 after spending $3,000 in the first 6 months (Offer expires 12/10/2020)	6% on select US streaming services, 3% on transit and US gas stations, 6% at US supermarkets on up to $6,000 annually, then 1% after that and on all other purchases	$0 intro annual fee for the first year ($95 thereafter)		Perfect for families: Get up to 6% on everyday purchases and a welcome offer worth $300. This heavy-hitter rewards card has uncontested value. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Blue Cash Everyday® Card from American Express		20% at Amazon.com up to $200 back in the first 6 months, plus $100 after spending $1,000 in the same timeframe	20% at Amazon.com up to $200 back in the first 6 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		This everyday cashback card is ideal for Black Friday and holiday shopping with 20% back at Amazon.com up to $200 back in the first 6 months. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Chase Freedom Flex℠		$200 after spending $500 in the first 3 months, plus 5% cash back at grocery stores on up to $12,000 in the first year	5% back in rotating categories up to $1,500 combined each activated quarter (then 1%), 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases	$0		Get up to 5% cashback in rotating and newly added everyday categories. The refreshed Freedom Flex card has lots of earning potential.	Apply now View details	Compare	loading Fetching your data...
Chase Sapphire Preferred® Card		60,000 points after spending $4,000 in the first 3 months, a value of up to $750 through Chase Ultimate Rewards	5x points on Lyft, 2x points on travel and dining and 1x points on all other purchases	$95		Earn a signup bonus worth $750 with this popular travel card. Combine with other Chase Ultimate Rewards cards for even greater value.	Apply now View details	Compare	loading Fetching your data...
Citi® Double Cash Card		N/A	Up to 2% cash back on purchases (1% when you buy plus 1% as you pay)	$0		Earn up to 2% on every purchase with no annual fee. This is the highest flat-rate cashback card on the market.	Apply now View details	Compare	loading Fetching your data...
American Express® Gold Card		60,000 points after spending $4,000 in the first 3 months	3x points on directly-booked flights; 4x at restaurants; 4x at US supermarkets on up to $25,000 annually (then 1x points)	$250		Earn up to 4x points on select purchases, a bevy of travel perks, and a welcome offer worth up to $600 with this upper-mid tier travel card. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Chase Freedom Unlimited®		$200 after spending $500 in the first 3 months, plus 5% cash back at grocery stores on up to $12,000 in the first year	5% cash back on travel purchased through Chase, 5% on Lyft, 3% on dining and drugstores and 1.5% on all other purchases	$0		This solid 1.5% cashback card gets even better with the addition of up to 5% back in categories like travel, drug stores and dining.	Apply now View details	Compare	loading Fetching your data...
The Platinum Card® from American Express		100,000 points after spending $5,000 in your first 6 months, plus 10x points at US gas stations and US supermarkets on up to $15,000 in combined purchases in the same timeframe	10x points at US gas stations and US supermarkets on up to $15,000 combined in the first 6 months, 15x points on directly-booked flights or on flights and hotels on Amex Travel. 1x points on all other purchases. Starting January 1, 2021, your 15x points on flights will be capped on up to $500,000 annually (then 1x points).	$550		One of the most valuable premium travel cards, featuring two welcome offers worth up to $4,500, multiple travel credits and unrivaled lounge access. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Citi Premier® Card		60,000 points after spending $4,000 in the first 3 months	3x points at restaurants, supermarkets, gas stations, flights and hotels and 1x points on everything else	$95		Earn 60,000 bonus points after making $4,000 in purchases with your card within the first 3 months of account opening.	Apply now View details	Compare	loading Fetching your data...
American Express Cash Magnet® Card		$150 after spending $1,000 in the first 3 months	1.5% cash back on all purchases	$0		With 1.5% back on everything and a 15 months intro APR on purchases, this no-annual-fee rewards card makes it simple to earn more rewards. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Chase Sapphire Reserve®		50,000 points after spending $4,000 in the first 3 months	10x points on Lyft rides, 3x points on dining and travel after earning your $300 travel credit and 1x points on all other purchases	$550		Get a generous $300 in annual travel credits, 3x points on travel and dining, and a 50% bonus on point redemptions with Chase's premier card.	Apply now View details	Compare	loading Fetching your data...
Hilton Honors American Express Card		80,000 points after spending $1,000 in the first 3 months	7x points on Hilton Honors purchases, 5x at US restaurants, US supermarkets and US gas stations, 3x on all other purchases	$0		With a massive welcome offer for a no-annual-fee card and up to 7x points at Hilton, this is a solid pick for Hilton fans and occasional travelers. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Delta SkyMiles® Gold American Express Card		35,000 miles after spending $1,000 in the first 3 months	2x miles on Delta purchases, restaurants and at US supermarkets and 1x miles on all other purchases	$0 intro annual fee for the first year ($99 thereafter)		With a welcome offer worth up to $600, up to 2x miles on select purchases, and assorted Delta perks, this is a strong choice for Delta fans. Rates & fees	Apply now View details	Compare	loading Fetching your data...
TD Cash Credit Card		$150 after spending $500 in the first 90 days	3% on dining, 2% at grocery stores and 1% on all other eligible purchases	$0		3% on dining and 2% on groceries make this a valuable card for food purchases. Use it while traveling, too, with no foreign transaction fees. Available in: CT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT	Apply now View details	Compare	loading Fetching your data...
CardMatch™ from creditcards.com		See terms	See terms	See terms		Use the CardMatch tool to find cards you're likely to qualify for with your credit score, without a hard pull on your credit.	See offer View details	Compare	loading Fetching your data...
Costco Anywhere Visa® Card by Citi		N/A	4% at gas stations on up to $7,000 annually (then 1%), 3% at restaurants and on travel, 2% at Costco and 1% on all other purchases	$0		An impressive cashback card that offers up to 4% back on everyday purchases like gas, travel and dining all for the cost of a Costco membership.	Apply now View details	Compare	loading Fetching your data...
Marriott Bonvoy Brilliant™ American Express® Card		100,000 points after spending $5,000 in the first 3 months, plus earn 25,000 after the first anniversary of card membership (offer expires 1/13/2021)	6x points at Marriott Bonvoy hotels, 3x at US restaurants and on flights booked directly with airlines and 2x for all other purchases	$450		Earn 100,000 bonus points when you spend $5,000 or more within your first 3 months, plus earn 25,000 after the first anniversary of card membership (offer expires 1/13/2021). Rates & fees	Apply now View details	Compare	loading Fetching your data...
Petal® 2 "Cash Back, No Fees" Visa® Credit Card		N/A	Up to 10% cash back from select merchants, on other purchases earn 1% back, 1.25% after six on-time payments and 1.5% after 12 on-time payments	$0		Build your credit with rewards and no fees: Apply if you're new to credit or have a fair to good score of 600 or higher. See if you prequalify with no impact to your score.	Apply now View details	Compare	loading Fetching your data...
Southwest Rapid Rewards® Priority Credit Card		40,000 points after spending $1,000 in the first 3 months	2x points on Southwest and Rapid Rewards hotel and car rentals and 1x points on all other purchases	$149		Earn 40,000 points after you spend $1,000 in the first 3 months of account opening.	See offer View details	Compare	loading Fetching your data...
Hilton Honors American Express Surpass® Card		130,000 points after spending $2,000 in the first 3 months	12x points on Hilton Portfolio spending, 6x at US restaurants, US supermarkets and US gas stations, 3x on all other purchases	$95		With a big welcome offer worth up to $650, up to 12x points on spending, and free Gold status, this is an upgrade from the entry Hilton card. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Delta SkyMiles® Blue American Express Card		10,000 miles after spending $500 in the first 3 months	2x miles at restaurants and on direct Delta purchases and 1x miles on all other purchases	$0		Earn 2x miles on Delta purchases and dining with this simple, entry-level Delta card, and pay no annual fee. Rates & fees	Apply now View details	Compare	loading Fetching your data...
Credit One Bank® Visa® with Free Credit Score Access		N/A	1% cash back on all purchases or in categories based on Credit One Bank’s discretion	$0 to $99		Get 1% cash back on all purchases or in categories based on Credit One Bank’s discretion.	Apply now View details	Compare	loading Fetching your data...
Credit One Bank® Unsecured Visa® with Cash Back Rewards		N/A	1% cash back on all purchases or in categories based on Credit One Bank’s discretion	$0 to $99		Earn 1% cash back on all purchases or in categories based on Credit One Bank’s discretion.	Apply now View details	Compare	loading Fetching your data...
Credit One Bank® Platinum Visa® for Rebuilding Credit		N/A	1% cash back on all purchases on eligible purchases	$0 to $99		Earn 1% cash back on all purchases or in categories based on Credit One Bank’s discretion.	Apply now View details	Compare	loading Fetching your data...
Official NASCAR® Credit Card from Credit One Bank®		N/A	Up to 1% cash back on eligible purchases determined by Credit One and double cash back at the NASCAR Shop	$0 to $99		Get up to 1% cash back rewards on eligible purchases determined by Credit One and double cash back rewards at the NASCAR Shop.	Apply now View details	Compare	loading Fetching your data...

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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

• What are the best reward programs?

  There are no “best” reward programs necessarily. Each can prove valuable provided you can make use of its benefits and reward potential.

• What happens to my points if my flight is canceled?

  If you cancel or reschedule a flight, you’ll typically have your points refunded. However, you may have to pay a fee for the cancellation or rescheduling.

• How many miles does it take to get a free flight?

  The number of miles you need for a flight depends on the value of the airline mile and the price of the flight. See above for how to calculate the miles needed.

• Can I redeem points for cash back?

  It depends. Many credit card loyalty programs let you redeem miles or points as cash back. Airline and hotel programs don’t typically have this option.