Please note: This is a demonstration case study designed to show how our calculator works. It does not reflect real-time award space or real user data.
When deciding whether to book an economy flight with cash or points, it's essential to compare the point value against the cash price, factoring in taxes and fees. Here is a typical scenario for a domestic round-trip flight.
Imagine you find a flight that costs $350 in cash. The airline is offering the same flight for 15,000 points plus $5.60 in taxes and fees.
To determine the value you are getting per point (Cents Per Point, or CPP), we use the following formula:
CPP = ((Cash Price - Taxes and Fees) / Points Required) × 100
Plugging in our numbers: CPP = (($350.00 - $5.60) / 15,000) × 100 CPP = ($344.40 / 15,000) × 100 CPP = 2.30 cents per point
Want to try it yourself? Calculate this scenario in our Points vs Cash Calculator, or use our Points to Dollars Calculator to see what your entire points balance is worth.