1. What is CPM?

CPM (Cents Per Mile/Point) is a metric used to evaluate the value of reward points or miles. It calculates 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 price in dollars ($)
• Points — The number of points/miles required for redemption

Explanation: This calculation helps determine the monetary value of each point/mile when used for a specific redemption option.

3. Importance of CPM Calculation

Details: Calculating CPM is essential for maximizing the value of reward programs. It helps compare different redemption options and identify the best value for your points/miles.

4. Using the Calculator

Tips: Enter the cash price in dollars and the number of points required for redemption. Both values must be positive numbers (cash price > 0, points ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is a good CPM value?
A: A good CPM value varies by program, but generally values above 1.0 cent per point are considered good, with higher values indicating better redemption options.

Q2: How does CPM help in reward optimization?
A: By calculating CPM for different redemption options, you can identify which offers provide the best value for your points/miles.

Q3: Should I always choose the highest CPM option?
A: While higher CPM generally indicates better value, you should also consider your personal travel preferences and needs when choosing redemption options.

Q4: Does CPM calculation apply to all reward programs?
A: Yes, CPM calculation can be applied to any reward program that allows points/miles redemption for purchases, though optimal values may vary between programs.

Q5: How often should I calculate CPM?
A: It's good practice to calculate CPM whenever you're considering a redemption, as point values and redemption rates can change over time.