Advertiser Disclosure: The Rewards Mom has partnered with CardRatings for our coverage of credit card products. The Rewards Mom and CardRatings may receive a commission from card issuers.

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Ever wonder if you’re actually getting a good deal when you use your points? You’re not alone. I get this question a lot, and the truth is, not all points are created equal. A quick calculation can help you decide whether to hit redeem or save those points for something better.

If you’re just getting started with travel rewards, I go over all of this (and more) in my Beginner’s Guide to Points and Miles, but let’s walk through the basics here.

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Why Point Value Matters

Think of points like money with different exchange rates. For example, 1,000 points from one program might be worth twice as much as 1,000 from another. A flight might give you incredible value, while redeeming those same points for a gift card? Not so much.

If you want to make the most of what you’ve earned, knowing the value of a point is key.

The Easy Math: How to Calculate Point Value

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Examples You’ll Actually Use

Let’s look at a few real-world examples:

Flight Redemption

• You find a roundtrip economy flight to Europe for $800 or 50,000 airline miles.
• $800 ÷ 50,000 = 1.6 cents per point.
• That’s above average, so I’d call that a win.

Hotel Redemption

• You’re looking at a hotel that’s $300 per night or 50,000 points.
• $300 ÷ 50,000 = 0.6 cents per point.
• That’s lower than average for hotel points, so you might want to pay cash and save your points.

Gift Card Redemption

• A $50 gift card costs 5,000 points.
• $50 ÷ 5,000 = 1 cent per point.
• Not terrible, but not amazing either—especially compared to what you could get by transferring those points to travel partners.

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Want Better Value from Your Points?

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Final Thoughts

You work hard to earn your points, so don’t waste them. A quick value check before you redeem can help you avoid low-value options and save those rewards for a trip that will really save you in the long run. Once you get the hang of it, you’ll spot a “good” redemption in seconds.

Want to see which cards earn the kind of points that stretch furthest? Here’s a list of some of my favorite travel rewards cards:
Check them out here

And if you’re looking for more hands-on help, come join me on Instagram, hop into the Facebook group, or grab my step-by-step beginner’s guide. You’ve got this, and I’m here to help every step of the way.

Editorial Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
Advertiser Disclosure: The Rewards Mom has partnered with CardRatings for our coverage of credit card products. The Rewards Mom and CardRatings may receive a commission from card issuers.