When spending points beats paying cash, and when buying miles, waiting for a transfer bonus or holding a balance is worth it. Each guide works one decision through with its own numbers.
I have a booking or an offer in front of me and need to decide what it is worth.
Every decision in this topic comes down to one comparison: the cash a redemption saves, divided by the points it costs, against what those points would get you elsewhere. The formula is (cash price − cash you still pay on the award) ÷ points × 100 = cents per point. If that number beats your own baseline for the currency, spend the points; if not, pay cash and keep them.
The guides and calculators here differ in what goes into each side of that formula: award taxes and carrier surcharges, the miles or hotel points a cash booking would have earned, a transfer bonus, the price of bought miles, or the slow loss of value on a balance you hold. Find your situation below and start with the first link; each one either computes the number from your own inputs or works one example with dated, labelled inputs.
Enter the cash fare, the award's taxes and fees and the points price. Count the miles the cash ticket would earn, because an award ticket usually earns none.
Hotel math differs from flights: the cash rate carries room tax and often a resort fee, and some programs give a free night on longer award stays. Price the whole stay, not one night.
A bonus lowers the points price only for an award you will actually book. Price the award with and without the bonus, then decide whether waiting for a seat costs you the bonus.
Work out the effective cost per mile with the bonus and any purchase taxes, then compare it with the value you expect from the award you would book.
A balance loses value when programs raise award prices, and some currencies are lost when you close a card. Put a yearly cost on holding, and check the expiry rules first.
Your baseline is the value you can get without effort: cash back or the bank's travel portal. Anything below it is a bad trade.
That is a comparison of two ways to book, covered in the companion topic on comparing award seats, cash and portals.
Transfer before a bonus ends only if you already have a specific redemption that beats your baseline value once the bonus is applied — a deadline is not a reason by itself. Two real September 2026 bonuses (Amex to British Airways Avios at 30% through September 27, and Citi ThankYou to Leaders Club at 25% through September 19) show how deadline pressure and actual value are separate questions.
Award flight taxes and fees can look high because points usually cover only the fare or mileage component. The cash line can still include government taxes, airport or security fees, carrier-imposed surcharges, partner-program charges, booking/service fees, and optional extras. The right move is to read the airline fee breakdown, separate unavoidable government charges from carrier/program charges, then compare the total cash due plus points against the cash fare you would actually buy.
Buying airline miles is only worth it when the effective cost per mile — sale price divided by bonus-adjusted miles — is clearly below the cents per point you will actually get from a specific redemption you can book right now. For most people topping off a balance for a confirmed award, the math can work; for anyone buying miles speculatively, it usually fails, because you pay cash today for a currency the program can reprice at any time.
Points and miles are a currency whose issuer can reprice it at any time, so a hoarded balance carries a real expected annual cost: balance × your value per point × the devaluation rate you assume. Earn and burn wins whenever that drag exceeds what waiting buys you — and the worksheet in this guide turns the slogan into a number, including the two legitimate reasons to hold (a named target award and a short, defined horizon) and the expiration sidebar for balances you keep.