How I Calculate Credit Card Point Values - The Complete Guide
Published on 8/4/2025
When comparing credit card offers, one of the most important factors is understanding what your bonus points are actually worth. But how do I arrive at those seemingly precise valuations like "1.9¢ per Qantas point" or "1.9¢ per KrisFlyer mile"?
In this comprehensive guide, I'll break down exactly how RWRDS calculates point values, where these numbers come from, and why they matter for your credit card decisions.
The Challenge of Point Valuations
Credit card points aren't cash - their value depends entirely on how you redeem them. A Qantas point could be worth:
- 0.5¢ when redeemed for toasters in the Qantas Store
- 1.5¢ when used for domestic flights
- 2.0¢+ when used strategically for international business class
This variability makes it challenging to assign a single "value per point." However, for comparison purposes, I need consistent benchmarks.
Valuation Methodology
1. Qantas Points: 1.9¢ per point
Based on: Point Hacks' latest valuation (January 2024)
Sources:
Why 1.9¢: According to Point Hacks, Qantas points are valued at 1.9¢ due to:
- Easy to earn with huge range of domestic and international redemption destinations
- Access to Oneworld alliance and Emirates network
- Strong domestic route network
- Note: Premium cabin availability can be challenging on QF and partners like Emirates
2. Velocity Points: 1.9¢ per point
Based on: Point Hacks' latest valuation (January 2024)
Sources:
Why 1.9¢: According to Point Hacks, Velocity points are valued at 1.9¢ due to:
- Easy to earn with decent range of domestic and international redemption destinations
- Strong partnerships with Qatar Airways and Singapore Airlines
- Good redemption rates for domestic flights
- Note: Network coverage can be patchy within Europe and to/from South America
3. KrisFlyer Miles: 1.9¢ per mile
Based on: Point Hacks' latest valuation (January 2024)
Sources:
Why 1.9¢: According to Point Hacks, KrisFlyer miles are valued at 1.9¢ due to:
- Good seat availability across all cabins
- Wide range of international destinations
- Low/no carrier charges on redemption bookings
- Note: 3-year hard expiry on points and expensive partner awards
4. American Express Points: 0.5-3.0¢ per point
Based on: Transfer flexibility and redemption method
Sources:
- American Express Membership Rewards Australia
- Analysis of airline transfer partners and redemption rates
- Internal redemption tracking
Why this range:
- Base value (gift cards/cash): 0.5¢ per point
- Airline transfers: 1.0-3.0¢ per point depending on:
- Transfer ratios (2:1 to 3:1 to major airlines)
- Cabin class (economy vs premium)
- Route and availability
- Best value found in business/first class redemptions after transfer
5. Bank Points (CitiRewards, NAB, etc.): 1.0¢ per point (default)
Based on: Limited transfer options and lower redemption rates
Why 1.0¢: Reflects typical bank point programs with:
- Fewer transfer partners
- Lower transfer ratios
- More limited redemption options
Conclusion
Point valuations are an imperfect but necessary tool for comparing credit card offers. My methodology prioritizes:
- Real-world redemptions over theoretical maximums
- Conservative estimates over optimistic projections
- Accessible redemptions over expert-level optimizations
- Transparency about sources and limitations
Remember: these are tools for comparison, not guarantees. The best point value is the one that gets you the travel or rewards you actually want.
Last updated: August 4, 2025
Questions about my methodology? Contact me at [email] or discuss on our community forums.
