Points 101

Cents Per Point: How to Value What You Have

The one number that tells you whether a redemption is good. Formula, worked example, and the bands worth memorizing.

Cents per point (CPP) is the standard metric. Divide the cash value of what you're getting by the points you're spending, after taking out any cash you still had to pay.

Formula

(Cash price − fees you still pay) ÷ (Points required) × 100 = CPP

Example: $1,200 business flight ÷ 60,000 miles × 100 = 2.0¢ per mile

Below 1.0¢

Poor redemption — consider cash instead

1.0¢ – 1.5¢

Baseline — about what portals offer

2.0¢ and above

Excellent — aim for this on premium travel

Points Commander lets you set a custom CPP per program under Settings → Programs so your portfolio value reflects your real redemption strategy. See exactly how we calculate it →

All Points 101 guides →