### Reward Points/Miles Calculator

This calculator allows you to determine whether you are getting a good deal when redeeming points or miles for anything, such as a Hotel Room, Rental Car, or Airfare. Here is how it works.

Tutorial for the Credit Card Points/Miles Calculator.

### Example

Here is a website (Marriott Bonvoy) allowing you to choose to pay either Cash or Miles for a room. This image shows a price of $161 or 37,000 points. |

Your credit card will tell you the “Points Multiplier” which is the number of points you get per dollar spent. This image shows they have one credit card providing 1 point per dollar spent = 1X. , and another credit card that provides 2 points per dollar spent = 2X. If you have a 1X card you put 1 in the calculator, if it is a 2X card you put a 2, a 3X card and you put a 3, and so on. |

Try the calculator below, enter:

“**Price**” of **$161**;

“**Points**” as **37,000**, and

“**Number of points or miles earned per dollar**” as **1**.

**RESULTS: **you should see .44%, which means this deal is the equivalent of getting .44% cash back on a credit card. In other words if you have credit cards that give you more than .44% cash back then it would be better to have gotten cash back then to have used this card and taken this deal/exchange of miles/points for a room. I would consider this exchange of miles/points for a room to be a bad deal.

When I use this calculator I prefer to get a result of more than 2%, otherwise I would just use a 2% cash back card. I hope that makes sense, please watch the video below for a more detailed explanation.

## Your Results

### What Result is Good? Aim for More Than 2%

The **Result** is telling you what you would have earned on a Cash Back card. So if the result is less than 2% then it is not as good as a 2% card, you may as well have used a 2% cash back card. Rarely do cash back cards give more than 2%, so if you can obtain a **Result** of more than 2% then you are getting a better deal then a 2% cash back card would have provided.

Watch this video which explains how to compare prices and points/rewards in detail.

## How to Interpret Results

Credit cards that provides you with Cash Back are usually any where from 1% to 2%. If you can get cash back why use a points or rewards card? You use points/rewards cards in hopes of obtaining more value for your points/rewards. But how do you determine what value you are getting for the points/rewards? Our calculator above does just that.

Here are some examples.

**EXAMPLE 1 (1x card)**

In the image above you will see that you can book a hotel for $161 a night or use 37,000 points. Using the calculator you put in 161 for the **Price** and 37,000 for the **Points**. If your credit card says it gives you 1X points (1 point per $1 spent) then you put a 1 in the **Point Multiplier** box.

The result will be **.44%**. This means that if you had used a Cash Back credit card then you would have gotten .44% back, which is much lower than the 2% cash back cards. Therefore this is not a good deal because you of well just of used a cash back card and not a points card.

**EXAMPLE 2 (2x card)**

Use the same input but assume that you have a 2X points card (2 points per $1 spent) then you put a 2 in the **Point Multiplier** box.

The result will be **.88%**. It is a better value but still less than a 2% cash back card would have provided.

**EXAMPLE 3 (1x card)**

In the video below you will see that we provide an example where you can book a hotel for $119 a night or use 11,500 points. Using the calculator you put in 119 for the **Price** and 11,500 for the **Points**. If your credit card says it gives you 1X points (1 point per $1 spent) then you put a 1 in the **Point Multiplier** box.

The result will be **1.03%**. This means that if you had used a Cash Back credit card then you would have gotten 1% back, which is not bad but you should shoot for 2% or more.

**EXAMPLE 4 (2x card)**

Use the same input but assume that you have a 2X points card (2 points per $1 spent) then you put a 2 in the **Point Multiplier** box.

The result will be **2.07%**. This means that if you had used a Cash Back credit card then you would have gotten 2.07% back, which is slightly better than a 2% cash back card.