Our current points valuation for credit card, hotel and airline loyalty programs.
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 program||Average redemption value in cents per mile|
|Alaska Airlines Mileage Plan||1.8|
|Southwest Rapid Rewards||1.7|
|Virgin Atlantic Flying Club||1.5|
Points valuation for hotel loyalty programs
|Hotel loyalty program||Point valuation in cents per point|
|IHG Rewards Club||0.7|
|Starwood Preferred Guest (Now Marriott Bonvoy)||0.9|
|World of Hyatt||2.0|
Points valuation for credit card loyalty programs
|Credit card loyalty program||Points valuation in cents per point|
|American Express Membership Rewards||2.0|
|Bank of America||–|
|Capital One Rewards||1.5|
|Chase Ultimate Rewards||2.0|
|Citi ThankYou Rewards||1.5|
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.
- 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.
Compare rewards credit cards
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.