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Category Personal Finance

Reward Configuration

Loyalty Program

Override Valuation Rate (CPP)

Valuation (Cents Per Point) Industry Avg: -- ¢

Current Point Balance

Goal Tracking

Redemption Goal Cost ($) Cash price of the flight/hotel you want.

Earning Rate (Points per $) E.g., 3x on Dining, 5x on Flights.

Valuation Analysis

Total Portfolio Value

$0.00

@ 0.0 cents/point

Points for Goal

Spend Required

Goal Progress 0%

Enter a goal amount to track progress.

Devaluation Simulator

Years: Loss/Yr: %

Future Value: $0.00 (-$0.00)

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About

Loyalty points are a pseudo-currency. Their value is deliberately obfuscated by issuers to make rewards seem larger than they are. While 100,000 points sounds like a fortune, its real-world purchasing power can range from $300 to $2,000 depending on the program. This tool strips away the marketing veneer to reveal the mathematical reality of your rewards.

We utilize the Cent Per Point (CPP) standard - the definitive metric used by travel economists to value loyalty currencies. By comparing your redemption options against these benchmarks, you can decide whether to burn points now or hoard them for high-value asymmetric redemptions (like international business class). However, hoarding carries risk: points are not legal tender and are subject to aggressive inflationary devaluation.

Formulas

The baseline valuation is derived using the Cost Per Point (CPP) formula, which converts the abstract integer of "points" into a fiat currency equivalent.

Vtotal = P × Rcpp100

Where P is the Point Balance and R_cpp is the Rate in Cents Per Point. To project the impact of devaluation over time (points inflation), we apply a decay function similar to Present Value calculations:

Vfuture = Vtotal × 1 − d^t

Here, d represents the annual devaluation rate (e.g., 0.05 for 5%) and t is the duration in years.

Reference Data

Program Name	Category	Avg. Value (CPP)	Value of 10k Points
American Express Membership Rewards	Bank	2.0 ¢	$200.00
Chase Ultimate Rewards	Bank	2.05 ¢	$205.00
Citi ThankYou Rewards	Bank	1.6 ¢	$160.00
Capital One Miles	Bank	1.85 ¢	$185.00
Bilt Rewards	Bank	1.8 ¢	$180.00
Alaska Airlines Mileage Plan	Airline	1.8 ¢	$180.00
American Airlines AAdvantage	Airline	1.5 ¢	$150.00
Delta SkyMiles	Airline	1.2 ¢	$120.00
United MileagePlus	Airline	1.2 ¢	$120.00
Southwest Rapid Rewards	Airline	1.4 ¢	$140.00
British Airways Avios	Airline	1.5 ¢	$150.00
Air Canada Aeroplan	Airline	1.5 ¢	$150.00
Virgin Atlantic Flying Club	Airline	1.4 ¢	$140.00
World of Hyatt	Hotel	1.7 ¢	$170.00
Marriott Bonvoy	Hotel	0.8 ¢	$80.00
Hilton Honors	Hotel	0.6 ¢	$60.00
IHG One Rewards	Hotel	0.5 ¢	$50.00
Wyndham Rewards	Hotel	1.1 ¢	$110.00
Starbucks Stars	Retail	4.0 ¢	$400.00

Frequently Asked Questions

CPP stands for "Cents Per Point". It is the standard unit of measure for loyalty programs. If a 25,000-point redemption gets you a $500 flight, the CPP is 2.0 (50000 cents / 25000 points). Knowing the average CPP prevents you from redeeming points for low-value items (like toasters or cash back) when they could be worth 3x more for travel.

Loyalty points are an unregulated currency. Airlines and banks print them infinitely to sell to partners. To manage this liability on their balance sheets, they periodically raise redemption prices (e.g., a flight costing 20k points today might cost 25k next year). This acts as "inflation," eroding your purchasing power.

This calculator divides the remaining points needed by your card's earning multiplier. For example, if you need 10,000 points and your card earns 3 points per dollar on dining, you need to spend $3,333.33 in that category.

Use the presets as a baseline - they represent a conservative average of what savvy users get. However, if you are looking at a specific redemption (e.g., a First Class ticket), calculate the exact CPP for that specific flight and enter it manually, as it will likely be much higher than the average.