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.

Compare rewards credit cards

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Name	Product	Welcome offer	Rewards	Annual fee	Filter values
Citi® Double Cash Card		N/A	Up to 2% cash back on purchases (1% when you buy plus 1% as you pay)	$0		This one of the most valuable flat cashback cards. It comes with 2% cash back (1% when you buy plus 1% when you pay) and 18 months to pay off transfers.	Apply now View details	Compare	loading Fetching your data...
Citi Rewards+℠ Card		Earn 15,000 points after spending $1,000 in the first 3 months	Earn 2x points at supermarkets and gas stations on up to $6,000 annually, then 1x points after that and on all other purchases	$0		Get rewards on gas and groceries with no annual fee. Ideal for everyday use, it's the only card that rounds purchases up to the nearest 10 points.	Apply now View details	Compare	loading Fetching your data...
Luxury Card Mastercard® Titanium Card™		N/A	1x points on all purchases with 2% point value when you redeem for airfare and 1% for cash back	$195		Enjoy unique excursions, privileged access to exclusive events and insider opportunities.	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...
Chase Sapphire Preferred® Card		60,000 points after spending $4,000 in the first 3 months	5x points on Lyft, 2x points on travel and dining and 1x points on all other purchases	$95		This popular travel card's signup bonus is worth up to $750. Get even more value out of your travel, dining, and Lyft rewards by transferring them to miles.	See offer 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...
Amalgamated Bank of Chicago Platinum Rewards Mastercard®		$150 after spending $1,200 in the first 90 days	1x points on all purchases and 5x points in quarterly rotating categories on up to $1,500 each quarter you activate, then 1x points	$0		Earn 5x points in rotating categories and $150 after spending $1,200 in the first 90 days	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		Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months	See offer View details	Compare	loading Fetching your data...
Luxury Card Mastercard® Gold Card™		N/A	1x points on all purchases with 2% point value when you redeem for airfare or cash back	$995		Earn 2% point value when redeemed for airfare or cash back through the Luxury rewards program.	Apply now View details	Compare	loading Fetching your data...
United℠ Explorer Card		40,000 miles after spending $2,000 in the first 3 months	2x miles at restaurants, hotels and United and 1x miles on all other purchases	$0 intro annual fee for the first year ($95 thereafter)		40,000 bonus miles after you spend $2,000 on purchases in the first 3 months from account opening.	See offer 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...
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.