How to Know If You’re Getting a Good Deal on Your Travel Reward Points (Simple Math Formula Included)

You’ve finally done it. You signed up for a travel rewards credit card, made your everyday purchases, and now you’re staring at your balance: thousands of points ready to redeem for your next big trip.

But before you book that flight or cash out for an Amazon gift card, there’s one important question you need to ask:

👉 Are you actually getting a good deal for your points?

Most beginners don’t realize that the same number of points can either cover a luxury vacation or barely get you a few Starbucks runs.. all depending on how you redeem them.

In this guide, you’ll learn how to calculate the true value of your points, plus a super simple formula you can use to instantly decide whether to book with points or pay cash

The Simple Formula to Calculate Point Value

Here’s the quick math I use every time I book a flight:

(Retail price – Taxes and fees) ÷ Points required = Value per point

You’re aiming for at least 2¢ per point to know you’re getting a solid redemption.

• If your result is below 1.2¢ per point, pay cash.

• If it’s above 2¢ per point, celebrate! You found a great deal!

💡 Point Redemption Values: The Good, the Bad, and the Ugly

Not all redemptions are created equal. Here’s how each option stacks up:

So, while it’s easy to hit “redeem for cash,” you’re leaving serious travel opportunities on the table.

The magic happens when you transfer points strategically to airline or hotel partners.

✈️ Real-Life Example: How I Turned 35,000 Points into a Flight to Portugal

For my family of six, I often start my research using Point.Me: one of my favorite platforms for finding award flight availability.

Here’s how it worked for our recent trip from Salt Lake City to Lisbon, Portugal:

• I searched one-way reward flights (because you can often mix airlines for better deals).

• On one day, flights were 125,000 points per person — not great.

• The next day? Only 42,000 points per person!

That’s a massive difference just by shifting travel dates by 24 hours.

I also found a 20% Amex transfer bonus through KLM, bringing the effective total to ~35,000 points per person + $135 in taxes/fees.

The retail cost of that same flight? Over $1,000 each.

When you run the math:

($1,000 - $135) ÷ 35,000 = 2.47¢ per point

That’s an amazing redemption: more than double what you’d get through most card portals.

🌍 Pro Tips for Maximizing Reward Value

1. Always Book Flights First.
Flights are where you get the biggest bang for your points. Save hotel redemptions and excursions for later.

2. Use Tools Like Point.Me or AwardWallet.
They show you multiple airline options and transfer bonuses in real time, and this is something your credit card portal won’t.

3. Watch for Transfer Bonuses.
Amex, Chase, Capital One, and Citi frequently offer 15–30% bonuses to airline partners. This boosts your point value instantly.

4. Search One-Way Flights Separately.
Mixing airlines (like Southwest one way, United the other) often saves thousands of points.

5. Calculate Before You Book.
Run the quick math.. if it’s under 1.2¢ per point, don’t waste your rewards. Hold your points for something better.

💳 Example: How Much Are 50,000 Points Really Worth?

Depending on how you redeem them:

The difference is staggering.

It's the difference between a short domestic getaway and a round-trip international vacation.

👩‍💼 My Rule of Thumb for Reward Travel

When in doubt, I always ask:

“Would I pay cash for this deal?”

If the answer is yes, and the math shows at least 2¢ per point, I book it.
If not, I hold my points for something more valuable: like international flights, premium economy seats, or boutique hotel stays where the cash price is inflated.

✈️ My Favorite Tools for Reward Travel Beginners

•  Point.Me  - Find real-time award availability.

• AwardWallet - Track all your points in one dashboard.

• Google Flights - Compare retail prices before redeeming.

• The Beginner’s Guide to Reward Travel (Free PDF) — My free step-by-step resource for getting started with travel hacking.

📘 👉 Download Your Free Beginner’s Guide Here 

❤️ Final Thoughts: Make Your Points Work for You

Learning to redeem points strategically has completely changed how my family travels.
As a mom of four, being able to show my kids the world — without blowing our budget —  makes travel feel like pure magic.

The goal isn’t just to travel more.
It’s to travel smarter, using the money you’re already spending to unlock unforgettable experiences!

So before you cash out your points for another Amazon gift card…
Open a calculator. Run the numbers.
And make sure you’re getting the deal you truly deserve.

⚠️ Disclosure

This post may contain affiliate links. If you book or purchase through them, I may earn a small commission at no extra cost to you. I only recommend travel tools and experiences I genuinely use and love. As a certified FORA travel advisor (IATA #33520476), I may earn commissions on qualifying bookings at no extra cost to you. All opinions are my own.

All information provided is for educational purposes only and does not constitute financial, legal, or tax advice. Credit card offers, reward valuations, and transfer bonuses change frequently — always confirm details directly with the financial institution before applying. Her Travel Club is not a bank or financial advisor.

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