When to Use Miles 101

The answer to one of the most frequently asked questions is often a no-brainer—once you can do the math

What is the value of a loyalty program mile? Is it one cent? That’s the figure the airlines sometimes throw around. Or is it $1? That’s what we subconsciously assign to it because with an affinity credit card, $1 nets 1 mile. The answer is neither. The value of a mile varies, but the method of calculating it doesn’t. And once you know it, you’ll know whether to pay or play. Here’s the formula:

Money Saved ÷ Award Miles Used = Value of a Mile