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# What is a point worth? How to judge a redemption
- URL: https://pointsatelier.com/what-is-a-point-worth/
- Published: 2026-10-10T22:21:53.000Z
- Updated: 2026-10-15T23:53:09.000Z
- Description: One line of arithmetic tells a good use of points from a poor one. Here it is, with the benchmark values, the floor each program pays in cash, and when paying cash is smarter.
- Author: Points Atelier
- Tags: Guides, #start-here

Points have no fixed price. The same balance can buy a statement credit, a gift card, an economy seat or a suite, and the value per point changes by a factor of ten between the worst option and the best. One calculation sorts them.

In this guide

[The calculation](#the-calculation)[The benchmark](#the-benchmark-what-a-typical-point-is-worth)[The floor](#the-floor-what-points-fetch-as-cash)[When to pay cash instead](#when-to-pay-cash-instead)[Points lose value when they sit](#points-lose-value-when-they-sit)

## The calculation

¢ per point

Cash price, minus the taxes and fees still paid on the award, divided by the pointsMultiply by 100 to read the answer in cents.

Two examples, with round numbers for illustration:

| Booking                       | Cash price | Points + fees          | Value per point |
| ----------------------------- | ---------- | ---------------------- | --------------- |
| A hotel night                 | $600       | 25,000 points, no fees | 2.4¢            |
| A one-way business class seat | $4,800     | 60,000 points + $150   | 7.75¢           |

The second looks remarkable, and it can be. But it only counts as 7.75¢ for someone who would genuinely have paid $4,800\. For a traveler who would otherwise have bought a $900 economy seat, the honest comparison is the economy fare, and the decision becomes: is a lie-flat seat worth 60,000 points instead of $900? Often yes. But the value is the alternative actually given up, not the headline fare.

## The benchmark: what a typical point is worth

The Points Guy (TPG) publishes monthly estimates of what each currency is typically worth when used well. Points Atelier uses them as its typical values. They are a sensible yardstick: a redemption above the benchmark is a good use; one well below it is usually a reason to pay cash.

| Currency                            | Typical value | Kind        |
| ----------------------------------- | ------------- | ----------- |
| Bilt Points                         | 2.2¢          | Bank points |
| Chase Ultimate Rewards              | 2.05¢         | Bank points |
| American Express Membership Rewards | 2.0¢          | Bank points |
| Citi ThankYou Points                | 1.9¢          | Bank points |
| Capital One Miles                   | 1.85¢         | Bank points |
| World of Hyatt                      | 1.65¢         | Hotel       |
| Atmos Rewards (Alaska and Hawaiian) | 1.55¢         | Airline     |
| Air Canada Aeroplan                 | 1.5¢          | Airline     |
| Virgin Atlantic Flying Club         | 1.5¢          | Airline     |
| American AAdvantage                 | 1.45¢         | Airline     |
| Air France-KLM Flying Blue          | 1.4¢          | Airline     |
| British Airways Avios               | 1.4¢          | Airline     |
| Singapore KrisFlyer                 | 1.3¢          | Airline     |
| Southwest Rapid Rewards             | 1.25¢         | Airline     |
| United MileagePlus                  | 1.2¢          | Airline     |
| Delta SkyMiles                      | 1.2¢          | Airline     |
| Marriott Bonvoy                     | 0.75¢         | Hotel       |
| Hilton Honors                       | 0.4¢          | Hotel       |

TPG calculates airline values from real award searches, hotel values from median nightly rates, and bank points from the value of their transfer partners. Its values describe typical redemptions, not the best possible ones.

Why bank points are worth more than the airlines they feed

A Membership Rewards point can become a Delta mile, an Aeroplan point or a Flying Blue mile, whichever is cheapest for the trip in question. That choice is worth something, which is why the bank currencies sit above every airline they transfer to.

## The floor: what points fetch as cash

Every program also offers cash-like redemptions. They are simple, and they are usually where most value is lost.

| Redemption                                               | Value per point | Against the benchmark    |
| -------------------------------------------------------- | --------------- | ------------------------ |
| Amex points as a statement credit                        | 0.6¢            | 30% of the typical 2.0¢  |
| Amex points for prepaid hotels via Amex Travel           | 0.7¢            | 35%                      |
| Amex points for flights via Amex Travel                  | 1¢              | 50%                      |
| Marriott points for a $50 Uber gift card (17,500 points) | about 0.29¢     | 38% of the typical 0.75¢ |
| Hilton points as Event Credits (25,000 points = $50)     | 0.2¢            | 50% of the typical 0.4¢  |

The pattern holds across programs: the easy, cash-like options usually return half the typical value or less. Before using points for a statement credit, a gift card or a booking through a bank's travel site, check the value against the typical figure in the table above.

## When to pay cash instead

1. The value is below the benchmark  
Paying cash and keeping the points for a better use is usually the stronger move.
2. The cash fare is cheap  
Points shine on expensive tickets and hotels. A $129 flight rarely beats 1¢ a point in miles.
3. The cash booking earns something valuable  
A paid stay earns hotel points and elite nights; a paid fare earns miles and status credit. Award bookings often earn neither.
4. The fees are high  
Some airlines add hundreds of dollars of surcharges to award tickets. Subtract them before calculating, as above.

## Points lose value when they sit

Programs raise award prices with little notice, and a balance does not earn interest. Two 2026 examples:

- World of Hyatt replaced its three price levels with five in May 2026; a standard room at its most expensive hotels can now cost up to 75,000 points a night, according to Hyatt’s own award chart.
- Chase changed transfers to World of Hyatt from 1:1 to 4:3 for Sapphire Preferred and Ink Business Preferred cardmembers (all of them since October 1, 2026; the Sapphire Reserve stays at 1:1), according to Chase.

The defensive habit is simple: earn flexible bank points, keep them with the bank, and transfer only for a booking in hand.

The Atelier Take

The question that matters is not "how many points?" but "how many cents, against the price that would really have been paid?"

Where to go next

- [Transfer partners, explainedStep 3 of 5 · Which bank points move where, at what ratio.](https://pointsatelier.com/transfer-partners-explained/)
- [The Atelier setupStep 4 of 5 · Three cards and one portal to earn the right currencies.](https://pointsatelier.com/the-atelier-setup/)
- [Rakuten: cash back or points?Step 5 of 5 · The shopping portal that pays in points.](https://pointsatelier.com/rakuten-cash-back-or-points/)

Airline, hotel and card names and logos are trademarks of their owners, used only to identify their programs. Points Atelier is not affiliated with or endorsed by them.