What are your credit card points and miles worth?

Credit Karma’s point valuations measure how much your credit card rewards could be worth.

It pays to think of your rewards like money because you can use them like currency to pay for flights or hotels, or you can even get cash back.

You might assume that each point is worth 1 cent. But just as the U.S. dollar is worth a different amount than the British pound or Mexican peso, each rewards program has its own unique value. And just as the values of those currencies can fluctuate, so can the values of points and miles.

That’s where we come in. Our credit card experts crunched the numbers for 21 popular rewards programs, which we grouped into three distinct methodologies for airline, hotel, and flexible rewards programs.

Here’s what we found.

Credit Karma’s standard point valuations for 2023

What’s the difference between Credit Karma’s standard and premium point valuations?

Credit Karma’s point valuations estimate how much your rewards could be worth — but it all comes down to how you redeem your points and miles.

The standard valuations give you an idea of what you can expect to get for main cabin flights and mid-tier hotels. It’s up to you to determine which approach is best for your situation.

Airline rewards programs

We looked at 10 popular airline rewards programs.

To calculate the value of these frequent-flyer miles, we compared the cost in dollars to the miles required to book a one-way flight across a sample of that airline’s common routes. You might notice airlines that have a larger international footprint — like United, American, and Delta — are valued more highly than airlines like Southwest or Alaska that fly mostly within the Americas.

When selecting flights, we avoid outliers like the most expensive or cheapest fares. Instead, we try to find a middle ground with a fare that roughly represents the median cost within our chosen time frame.

For the standard valuations, we looked at main cabin tickets that are relatively affordable.

For the premium valuations, we looked at first-class and business-class tickets purchased from long-haul U.S. carriers, which usually cost more, potentially making them a great way to use your miles. In fact, we found that redeeming for a premium award flight tends to be about two times more valuable than a standard award flight, based on our estimates.

Hotel rewards programs

We looked at five popular hotel rewards programs.

To calculate the value of hotel rewards, we compared the cost in dollars to the points required to book a one-night stay or the minimum stay required.

For the standard valuations, we looked at mid-tier hotels in the U.S.

For the premium values, we looked at some of the most exclusive luxury hotels and resorts around the world. These places typically cost more, which can make them a great way to use your points. In fact, we found that redeeming for a premium award night tends to be about four times more valuable than a standard award night, based on our estimates.

Flexible rewards programs

We looked at six flexible rewards programs.

Typically, points from flexible rewards programs are considered more valuable because they allow you to transfer points to a number of airline and hotel partners, some of which may offer better redemption values. For example, you may be able to maximize the value of your Chase Ultimate Rewards points by transferring to United MileagePlus or World of Hyatt, both of which we estimate would be worth more than redeeming through Chase.

We calculated the best value you can get for your points with these programs by comparing the value you can get from redeeming your points through the card’s own rewards program (when available) to the values you could get from transferring your points to partner hotels and airlines we reviewed.

The premium and standard valuations (shown above) reflect the valuations we measured from one of their most valuable transfer partners. Based on our estimates, premium award redemptions are about three times more valuable than standard awards.

What if I don’t want to transfer my points?

If you want to redeem your points through the same flexible rewards program in which you earned them, here’s what they could be worth, depending on which card you hold for the program and how you use your points.

How to calculate your own rewards values

It’s important to keep in mind that the value of your rewards depends on how you redeem them. For the most accurate measurement, we recommend you do your own calculation based on where, when and how you want to redeem.

To calculate your own rewards values, simply divide the price you would pay in dollars for a particular reward by the number of points or miles required to redeem. That calculation will give you the value per point for that specific reward.

Bottom line

Knowing how much points and miles are worth can help you decide which credit card to apply for when the time comes. It can also help you squeeze the most value out of the cards you already have, which can put you one step closer to the vacation of your dreams.

“But wait!” you might say. “How do I know I’m getting the best possible deal?”

You can use Credit Karma’s point valuation estimates as a benchmark. Start by comparing the point valuation you calculate for a particular flight or hotel to our results to determine whether you’re getting a good deal.

Though redemption values vary between programs, typically each point or mile is worth 1 cent when you redeem for cash back. So another way to figure out whether you’re getting a good value is to determine whether your rewards are worth more or less than 1 cent.