Maximize your travel rewards with our professional Miles vs Cash Calculator. Quickly determine whether you should use your hard-earned airline miles or pay with cash by calculating the exact cents-per-mile (CPM) value of any flight redemption.
Miles vs Cash Calculator
Enter at least three values and click Calculate to see results.
Miles vs Cash Calculator Formula
$V = \frac{(P – F) \times 100}{M}$
Source: The Points Guy Valuation Guide & NerdWallet Rewards Analysis
Variables Explained
- Cash Price (P): The total cost of the ticket if purchased with currency.
- Taxes & Fees (F): The mandatory cash out-of-pocket costs for an “award” ticket.
- Miles Required (M): The total amount of loyalty points/miles needed for the booking.
- Valuation (V): The resulting “Cents Per Mile” (CPM) used to measure redemption efficiency.
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What is a Miles vs Cash Calculator?
A Miles vs Cash Calculator is a specialized financial tool used by savvy travelers to determine the mathematical value of an airline reward redemption. By subtracting mandatory taxes from the cash price and dividing by the miles required, travelers can find the “Break-Even Point” of their points.
Understanding your CPM (Cents Per Mile) is crucial because every airline mile has an acquisition cost. If your redemption value is lower than what it costs to earn those miles, paying with cash is often the better financial decision.
How to Calculate Miles vs Cash (Example)
- Identify the total Cash Price (e.g., $600).
- Find the Taxes & Fees for the award flight (e.g., $50).
- Determine the Net Cash Savings ($600 – $50 = $550).
- Divide by Miles Required (e.g., 40,000 miles).
- Multiply by 100 to get 1.375 Cents Per Mile.
Frequently Asked Questions (FAQ)
What is a good CPM value? Generally, a value above 1.5 to 2.0 cents per mile is considered a good redemption for domestic flights, while business class can often exceed 4.0 cents.
Should I include the miles I would have earned on a cash ticket? Yes, advanced users subtract “Opportunity Cost” miles from the denominator for a more precise calculation.
Does this work for hotel points? Yes, the logic is identical, though hotel points typically have a lower average value (often 0.5 to 0.8 cents).
When should I always use cash? If the redemption value is below 1 cent per mile, it is almost always better to save your miles for a higher-value international or premium cabin flight.