Redemption Value (CPM) Calculator
Calculate the "Cents Per Mile" value to see if a redemption is a good deal.
Redemption Analysis
Value Per Point (CPP)
Verdict
How This Tool Works
This calculator determines the Cents Per Mile (CPM) value of a redemption. It tells you if you are getting a "good deal" for your points.
- Formula:
(Cash Price - Taxes) / Points Required * 100 = CPM. - Logic: We subtract the taxes you must pay from the cash price to find the "Net Value" you are getting, then divide by points to find the value per point.
- Assumptions: We assume "100" as the multiplier to convert dollars to cents.
How to Use (Steps)
- Find Cash Price: Look up how much the flight/hotel costs in cash (e.g., $1,200).
- Find Points Price: Look up the award price (e.g., 60,000 miles).
- Add Taxes: Enter any taxes/fees you must pay for the award (e.g., $5.60).
- Calculate: See your CPM. If it's higher than 1.5, you're doing well!
Example Calculation
Flight: New York to London (Business Class).
• Cash Price: $3,500.
• Points Price: 60,000 Miles + $50 Taxes.
• Math: ($3,500 - $50) / 60,000 * 100 = 5.75
CPM.
• Verdict: Incredible value! (Normal value is ~1.2 CPM).
Why This Tool Is Accurate
Simply dividing cash by points is wrong because it ignores taxes. Some international awards have high fuel surcharges (e.g., $800). This tool accounts for that to give you the real value.
Limitations & Disclaimer
CPM is subjective. If you would never pay $3,500 cash for a flight, then getting 5.0 CPM is "theoretical" value, not "money saved" value. Disclaimer: Don't redeem points just for a high CPM; redeem them for travel you actually want.
Frequently Asked Questions
Generally, anything above 1.5 cents is good. Anything above 2.0 cents is excellent. If you are getting less than 1.0 cent, you are better off using a cash back card.
Some airlines charge huge surcharges. If a flight costs $1,000 but the award ticket requires 40k miles + $600 in fees, your real benefit is only $400. That drops your value to 1.0 CPM, which is poor.
Yes. Hotel points (Hilton, Marriott, Hyatt) are generally worth less than airline miles (0.5 - 0.8 cents), except for Hyatt, which is often worth 1.5+ cents. Adjust your expectations accordingly.