Is Your Redemption a Good Value?
Tl;dr: There’s more to most redemptions than meets the eye. Use our calculator to figure out if yours is actually a good deal.
Last week, we talked about how just looking at the face value of a given redemption can be a bit misleading. Today, we’re giving you a (hopefully) easy-to-use tool to help you quickly check whether you’re getting real value from your points. Introducing:
The LazyPoints Point Value Calculator
How it works
The calculator has several inputs and several outputs–they’re all helpful in different ways, but you don’t need to use them all. In fact, we’ve set it up so that it only shows Face Value Per Point by default (FVPP). Just enter the number of points, any taxes or fees, and the cash price of the award—and the calculator will show you the FVPP.
Market Value: A More Accurate Comparison
You can add the “market value” to get a more accurate sense of the redemption value. Find a comparable redemption and plug it in here. There are no rules. The Fairfield Inn is cheaper but you don’t think it’s equivalent to the Holiday Inn Express you’re redeeming? There’s a cheaper AA flight, but you’d rather take Delta because of the schedule or the vibe? Totally fine. No need to bother with the market value—or maybe just adjust it a bit to reflect the tradeoff. The point is to get a realistic, fair comparison, whatever that means to you.
Personal Value: What It’s Actually Worth to You
The face and market values, though, are based on what the redemption costs on the market, not what you would necessarily pay for it. What if you can redeem points for a $500-per-night 5-star hotel, but you’d never pay more than $200 out of pocket to stay anywhere? That’s where “personal value” comes in.
Once you add “personal value,” you’ll see how much the award is “really” worth. BUT, points aren’t real money! They unlock the ability to have experiences that you might not be able to afford if paying on your own. And they can represent real steals compared to cash prices. That’s where the last field comes in: “cost to upgrade.”
Cost to Upgrade: Is the Splurge Worth It?
Let’s say you could use 60,000 credit card points to book two nights at that fancy hotel above, with no cash cost. That redemption is worth 1.7¢ per point when compared to booking with cash, or 1.3¢ per point compared to booking the hotel next door with cash. But if it’s really worth just $200 to you, the redemption is only getting 0.7¢ per point in true value. And if you could otherwise redeem those points for 1.25¢ each in other ways, you’re giving up $350 in future free travel to upgrade from the fine-but-not-fancy hotel you would have stayed in to the upscale points hotel.
Is that worth it? Up to you!
And remember, you can play around with the calculator any way you want. For example, enter the amount you’d be willing to pay in cash to get the fancy luxury redemption under “personal value.” The calculator will show you the value per point you’re getting in that case, along with the cost you’re paying above that amount for the redemption.
Just remember that the “cost to upgrade” is based on a point value of 1.25¢ per point. That 1.25¢ benchmark is all but guaranteed for Bilt points, and a reasonable assumption for Amex, Chase, Hyatt, and most U.S. airline currencies. But if you’re using lower-value currencies like Marriott, IHG, or Hilton, expect the real cost of an upgrade to be closer to half the number shown.
Lazy Take
There’s no single “right” way to value your points. But whether you’re chasing more trips through budget redemptions or splurging on aspirational lie-flat seats and beachside resorts, it helps to base your decisions on good information. That’s what the LazyPoints calculator is for.
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