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The best way to calculate the value of your points

No, it might not be "cents per point"

Author

Wuhoo Group
January 22, 2025

Cent per point (CPP) is the travel hacking industry standard for determining the value of your points. Regular cash back is usually 1 CPP, meaning one point is one cent. So for travel hackers, you want to redeem your points for more than that.

How to calculate CPP

As a reminder, don’t forget to refer others to this newsletter for more chances to win some prizes!

But back to the value of your points. How much more can you get from points? And that’s where it can get more subjective and people argue about it all the time.

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Or, you can view value in a different way. I talked with Moawia (@worldtravelwithmiles) for our first episode of WuhooPoint’s Season 2 Podcast all about the value of your credit card points. You can watch the full episode here.

Key Takeaways

  • Moawai presents the calculation of return - how much inherent value did I receive from the redemption and experience?

  • Points have value, so you’re not really getting a “free flight” since 60,000 points could have been $600 invested into your ROTH IRA or even a bathroom remodel.

  • Make sure you’re considering the opportunity cost of your points - whether through other flight redemptions, or again having the money in cash.

We have more episodes planned, so stay tuned!

Weekly Credit Card Tip #2

Different banks have different rules about how you can combine points. At the most strict, Amex does not allow this at all. Chase only allows between people living at the same address. Citi allows anyone, but with a limit. Capital One allows anyone with no liit.

What’s In our Wallets (Newsletter Exclusive)

Our lineup for this week is below. See our rationale here just for newsletter subscribers like you.

Matthew: American Express Business Platinum | Citi AAdvantage Platinum Select

Sarah: American Express Gold | Capital One Venture X

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About WuhooPoints

WuhooPoints focuses on the credit card consultation side of Wuhoo Group. We help you unlock the power of your credits cards for free luxury travel.