What a mile is actually worth on a specific redemption. The taxes and surcharges still payable on an award must come off the cash price first, and on some airlines they consume most of the value.
Also called: points value calculator, award redemption value.
$0.02 per mile, or $21.92 per thousand. Redeeming saves $1,315.00 against the cash fare. That is a poor redemption: the miles are worth less than they cost to buy. Buying miles costs $0.03 each.
Value per mile is the cash price you avoid, less the taxes and surcharges you still pay on the award, divided by the miles spent. Skipping that subtraction is the standard error and it can double the apparent value. Comparing the result to what miles cost to buy gives the honest test: if a mile is worth less than it costs to purchase, the redemption is poor regardless of how large the cash fare looked.
value per mile = cash price less the taxes you still pay, over the miles spentEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Value per mile$0.02
1,400 cash less 85 of taxes payable on the award is 1,315 of value for 60,000 miles, which is 21.92 per thousand, or 2.19 cents a mile. That is comfortably above the 3.0 cents they sell for, so buying miles for this redemption would lose money.
Open this exampleValue per mile$0.02
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Open this exampleFormula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator