Points vs. Cash Calculator for Flights & Hotels

Should I pay cash or use points for a flight or hotel booking?

Deciding whether to use points or pay cash essentially comes down to one number: how much value you get per point, although there is nuance depending on your points and miles skill level. Divide the cash price of the booking by the number of points it would cost, after subtracting any taxes and fees you still have to pay on the award, and you get cents per point, or CPP. Compare that to what the points are realistically worth, and you have your answer. This calculator does that arithmetic for you using Your Best Credit Cards' own valuations for each program. Have your own valuations? In one click you can adjust the value of any point or mile to your own and then calculate your decision.

Points vs. cash examples

The calculator compares the real cost of both choices. For an award booking, the value you receive is the cash price you avoid, minus any taxes, fees or surcharges you still have to pay. Divide that amount by the points or miles required to get the redemption value.

Cents per point = ((cash price − award taxes and fees) ÷ points required) × 100

Example 1: A flight where using miles makes sense

A flight costs $500, or 25,000 miles plus $11.20 in taxes. Subtracting the award taxes from the cash fare leaves $488.80 of value. Divide that by 25,000 miles and the redemption returns 1.96 cents per mile.

If you value those miles at 1.4 cents each, the 25,000 miles are worth $350. Add the $11.20 award charge and the effective cost of the award is $361.20. That is $138.80 less than the $500 cash fare, so using miles is the better deal.

Example 2: A cheap flight where paying cash wins

Now suppose the cash fare is only $250, while the award still costs 25,000 miles plus $11.20. The redemption value falls to 0.96 cents per mile.

At an assumed 1.4 cents per mile, those 25,000 miles are worth $350. With the $11.20 award charge, the effective award cost is $361.20. Paying $250 in cash is the better choice, and you keep the miles for a more valuable redemption.

Example 3: A hotel award with a resort fee

A hotel stay costs $425 in cash, or 50,000 points plus a $50 resort fee that is not waived on award stays. The points are only replacing $375 of the cash price, not the full $425, which is a redemption value of 0.75 cents per point.

If you value the points at 0.5 cents each, the 50,000 points are worth $250. Adding the $50 resort fee gives the award an effective cost of $300, still $125 less than paying cash. Points win, but the resort fee makes the redemption less valuable than it first appears.

The point values in these examples are illustrative. The live calculator uses YBCC's current valuation for the selected program, and you can replace it with your own personal valuation.

What else should affect your decision?

A close result is a judgment call. These are the things that tip it:

A paid flight can earn redeemable miles and elite status credit.
A paid hotel stay earns points on the cash rate, while an award stay only earns on incidentals. Most programs still give elite night credit for an award stay.
Award bookings sometimes have more flexible cancellation policies.
Using points can make sense when preserving cash matters more than maximizing theoretical value.
Transferable points should not be transferred until the award is confirmed, because transfers generally cannot be reversed.

Frequently asked questions

How do I know if an award booking is a good deal?

Work out your cents per point: take the all-in cash price, subtract the cash you'd still pay on the award booking in taxes and fees, and divide by the points required. If the result beats what the points are worth to you, use the points. If it doesn't, pay cash and keep the points for a redemption where they go further. If you are more advanced, it is worth considering how hard the currency you are spending is for you to earn more of. If you have a million Amex points and 20,000 Chase points, you may be more willing to pay cash than to part with the smaller balance.

What is a point or mile actually worth?

While there is no official value of any point or mile, we publish our own estimated values, which you can view here. In the end, though, a point is worth whatever you can reliably get for it. Our valuations are deliberately conservative: they reflect what a normal person should be able to get without hunting for rare premium-cabin awards. That means a "use points" verdict from this calculator is a cautious one.

What does cents per point (CPP) mean?

Cents per point is the value you're getting from a redemption, expressed in cents. If a $400 flight costs 20,000 points, that's 2 cents per point in value. It's the standard way to compare two redemptions that otherwise have nothing in common.

Should I ever pay cash when I have enough points?

Often, yes. Points are worth keeping when the redemption in front of you is a poor one. Cheap cash fares and heavily discounted hotel rates are usually better paid for in cash. Paying cash for flights also normally earns you miles, which award bookings frequently don't.

Do taxes and fees change the math? What about resort fees?

Yes, and they're the most commonly forgotten part. An award that still charges several hundred dollars in carrier-imposed surcharges is nothing like a free ticket, and the comparison has to account for it. Enter the cash you'd still owe on the award and the calculator subtracts it before working out your value per point. On the hotel side there is more to it. Marriott gives a fifth night free on award stays, and Hilton does the same if you hold Silver status or higher. IHG gives a fourth night free if you hold one of their annual fee credit cards. All three apply it inside the award search, so the total you are quoted already reflects it. Hilton and Hyatt also waive resort fees on award stays, and award nights generally carry no tax, so the cash still due on those is usually nothing.