When I first became interested in credit card rewards, I liked the idea of earning cashback but wasn’t too interested in learning about point transfers and all the rest. Nevertheless, sometime later, I did decided to take the plunge and get my first travel card. Yet, even though that was five years ago now, I’m still not an expert on what I should expect in terms of award redemptions. In fact, in many cases, I find myself struggling to do the most basic task of calculating the per-point value I’m seeing. That’s why I was incredibly happy to discover a new tool from Daily Drop that not only calculates your cents-per-point value but also tells you whether or not that’s a good deal.
To use this calculator, you’ll first want to select the point/miles currency you’re using. Then, you can enter the cash price of your booking alongside how many points/miles it would cost in you instead. There’s also a spot to add in any taxes or fees that may apply, as these are common with airline redemptions.
After entering that info, the tool will show you how much value you’re getting per point. Additionally, it will rate your redemption value, ranging from Poor to Epic (Good and Great are the middle two options, in case you were wondering). On the site, you can also see how much they expect each currency to be worth so that you can get a better understanding of why they’re rating is what it is.
While this tool is simple to use, there are situations where you might need to make an adjustment in order to find the true value you’re getting. For example, in the past, I’ve redeemed Hilton Honors points for stays, and with the Gold status I get via my Amex Platinum, I’m able to get the fifth night free when redeeming points. So, while I might be tempted to just enter the per-night pricing in Daily Drop’s tool, I believe it’d actually be better to compare the cash price of a five-night stay to the total points (assuming you’re planning on booking five nights, of course) and take that extra perk into consideration.
One other thing that might not be taken into account with this calculator is the exchange rate between your credit card and the currency you intend to use. So, for example, I might find a redemption that’s a pretty good use of Marriott Bonvoy points, but would still be a poor option if I’m turning my Amex Membership Rewards points into Bonvoy points for the purchase. That’s because, while Daily Drop values Bonvoy points at 0.9 cents, Amex MR points transfer to Marriott at a rate of 1:1 — which is the same ratio as other programs with much higher value (such as Virgin Atlantic Flying Club, where points are worth approximately 1.7 cents). That said, since Daily Drop does provide you with the overall cent-per-point value of your intended redemption, you can then decide for yourself whether it’s worth it.
On that note, as great and helpful as this tool is, it’s important to remember that it’s not meant to discourage you from making a redemption you want to make. After all, there are more reasons than just math as to why a certain redemption might make sense for someone. In other words, if you’re happy with an award booking option, then go for it! But, if you want to make sure you aren’t getting ripped off, then I think this Daily Drop Cent-Per-Point calculator could be a big help.