1. What is CPM?

CPM (Cents Per Mile/Point) is a metric used to evaluate the value of reward points or miles. It represents how many cents each point or mile is worth when redeemed for a specific purchase.

2. How Does the Calculator Work?

The calculator uses the CPM formula:

Where:

• Cash Price — The actual dollar amount of the purchase
• Points — The number of points/miles required for redemption

Explanation: This calculation helps determine whether using points/miles provides good value compared to paying cash.

3. Importance of CPM Calculation

Details: Calculating CPM helps maximize the value of reward programs by identifying the best redemption opportunities and avoiding poor-value redemptions.

4. Using the Calculator

Tips: Enter the cash price in dollars and the number of points required. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is a good CPM value?
A: Generally, 1 cent per point is considered baseline value. Values above 1.5 cents are good, while values above 2 cents are excellent.

Q2: Should I always choose the highest CPM redemption?
A: Not necessarily. Consider your travel needs, point expiration, and alternative redemption options before deciding.

Q3: Does CPM vary by reward program?
A: Yes, different programs have different point valuations. Always calculate CPM for specific redemptions rather than relying on general valuations.

Q4: Are there redemption fees that affect CPM?
A: Yes, some programs charge fees on award bookings. Include these fees in your cash price calculation for accurate CPM.

Q5: Can CPM be used for cashback comparisons?
A: Yes, CPM can help compare the value of points/miles against straight cashback offers to determine the better option.