Every few weeks, another loyalty program sends out an email screaming about a “limited time bonus” on purchased points. Buy 100,000 points and get 50% more! Purchase by Friday for maximum value! It all sounds great until you actually sit down and run the numbers.

Here’s the thing: sometimes buying points is genuinely smart. Sometimes it’s a terrible deal dressed up in marketing language. And the only way to know the difference is to do the actual math comparing what you’ll pay per point versus what you’ll get back when you redeem.

That’s exactly what this calculator does. Plug in what the points will cost you (including any bonuses), what you’re planning to book, and how many points that booking requires. The tool instantly shows you whether you’re getting a good deal, a marginal one, or whether you should just pay cash instead.

The Golden Rule: Redemption Value Must Beat Purchase Price

This sounds obvious, but you’d be surprised how many people skip this step. If you’re paying 1.5¢ per point but only getting 1.2¢ per point in redemption value, you’re literally losing money compared to just buying the ticket with cash. The calculator makes this crystal clear by showing both numbers side by side.

For a deal to be truly compelling, I want to see at least a 50% margin between what I’m paying and what I’m getting. That means if I’m paying 2¢ per point, I want to see at least 3¢ per point in redemption value. That buffer accounts for the risk that plans might change, the hassle factor of dealing with award bookings, and the opportunity cost of tying up cash in points.

How to Use This Calculator

The process is straightforward. First, find an award you actually want to book and note how many points it requires. Then check what the cash price would be for that same flight or hotel. Now look at the current points purchase offer and calculate your total cost including any bonuses.

Plug all four numbers into the calculator and let it do the work. You’ll instantly see your cost per point, your redemption value per point, and whether the purchase makes financial sense. The tool even calculates your exact dollar savings (or loss) so you know precisely what you’re getting into.

Bookmark This Page

Seriously, save this calculator somewhere you can find it. Points sales happen all the time, and having this tool ready to go means you can make smart decisions in the moment rather than getting swept up in promotional urgency. Every time a new bonus hits your inbox, come back here and run the numbers before you buy.

The best deals in travel rewards aren’t always the ones that are marketed the loudest. They’re the ones where the math actually works in your favor. This calculator helps you find those deals and avoid the ones that only look good in an email subject line.