When to Use Points vs Cash for Flights: A Step-by-Step Guide to Getting Maximum Value

When it comes to planning my travel adventures, I always make sure to reference multiple price points for the flights and accommodation that I need. Before I knew about the world of credit cards and points, I always thought about costs in terms of cash. I would often be bummed and get frustrated since I couldn’t afford to pay cash for all the flights and hotels I would need.

Credit card points can be extremely useful and powerful when used correctly. However, as with cash, points aren’t unlimited and are finite. Whenever I redeem points, I always seek to make sure that I am attaining the highest value possible for the points. I don’t use my points in all situations, and I strategically use cash when the point redemption options aren’t optimal.

Step 1: Scoping Out Cash Prices

Before even touching my points balances, my first move is to check cash fares. I head straight to Google Flights because it gives a clean, bird’s-eye view of the options. Its “Explore” map is perfect when I’m flexible with destinations or want to compare multiple departure cities. I’ll often set filters for nonstop flights, baggage included, and reasonable departure times.

Let’s say I’m planning a trip from Boston to Paris in the spring. I might find that round-trip cash fares hover around $650 in basic economy or $750 with a checked bag. Those baseline numbers are crucial because they help me understand the cash value of what I’m trying to book with points later.

Tip: Always compare apples to apples. If the award flight includes baggage and seat selection, make sure your cash comparison does too.

Another reason to check cash prices first is that airfare can swing dramatically depending on route, season, and even day of the week. By identifying low-fare windows, I can decide whether it’s worth burning valuable points now or saving them for a pricier redemption later.

Step 2: Searching For Point Redemptions

Looking for all the points redemption options for flights and hotels can be a very complicated and time-consuming process, but it is vital to ensure that you are getting good value for your points. Points are valuable and take a lot of effort to come by, and you shouldn’t redeem your points in situations where you’d be decreasing the points’ value below their base value.

I reference multiple mileage/point programs, and I search for the itinerary that I want to take to find the cost of the point redemption. I often like to use award redemption search engines to achieve this, such as Roame and Seats.aero. I also like to reference credit card travel portals such as Chase Travel℠, American Express Travel, Capital One Travel, etc.

For the Boston-to-Paris example, suppose I find:

• United MileagePlus: 30,000 miles + $57 in taxes each way
• Air France Flying Blue: 20,000 miles + $85 in taxes each way

Different programs yield different costs because they each have unique award charts, dynamic pricing models, and partner rules. That’s why cross-checking multiple sources matters. One program might quote a sky-high redemption, while another has hidden sweet spots that cut the cost nearly in half.

Step 3: Calculating Cent Per Point (CPP) Value

To find out if a point redemption is worth it, I calculate the CPP value that I would achieve for the redemption. To calculate the CPP, the cash fare I found earlier comes into play as it serves an important function for the calculation. First, take the cash fare, and then subtract any taxes and fees associated with the point redemption. Divide this result by the number of points that the redemption requires, multiply the quotient by 100, and you are left with the CPP.

Now that I have the CPP, I determine if a point redemption is worth it if the CPP is around or above 1.50 (but this CPP target can vary from person to person). Anything below 1 CPP is a weak valuation for the points and should not be redeemed. A CPP between 1 and 1.50 is not optimal, but I’d book it if it were the highest value I could attain for the points, and I simply cannot afford the cash price. Anything above 1.50 CPP is perfect and is what you should aim for when redeeming points.

Everyone’s threshold varies, but I personally look for 1.5 CPP or higher. Anything under 1 CPP means I’d rather just pay cash and save my points for a future redemption. Between 1 and 1.5 CPP is a gray zone where I weigh convenience, cash flow, and how fast I can earn points back.

Step 4: Factoring In Earning Rates and Opportunity Cost

Points don’t exist in isolation. When I spend $750 cash on a flight using a premium travel card, I’m also earning points on that purchase, often 3x or 5x depending on the card. If I pay with points, I usually forfeit those earnings. That’s another subtle cost that can shift the math.

Likewise, using a co-branded airline card may grant free checked bags or priority boarding. Those perks can make paying cash worthwhile for certain trips where redemptions don’t include them.

Step 5: Timing and Flexibility Matter

Award availability changes constantly. Sometimes booking with points early unlocks fantastic deals; other times, last-minute redemptions can be a steal when airlines dump unsold seats into award inventory.

My rule of thumb:

• Book early for high-demand routes (e.g., summer Europe, cherry-blossom Japan).
• Be patient for off-peak or flexible trips, you might score sub-10,000-mile domestic awards or low-tax partner options.

I also keep tabs on transfer bonuses. If Chase offers a 30% bonus to British Airways Avios, a 13,000-Avios flight suddenly costs only 10,000 points, pushing effective CPP even higher.

Final Remarks

Maximizing the value of your credit card points isn’t about blindly redeeming them. It’s about making informed decisions and comparing every redemption opportunity against other options.

By using tools like Google Flights and award search engines, I can better understand when to use points versus when to pay cash. At the end of the day, points are a limited resource. That’s why I only redeem them when I’m getting great value, ideally above 1.50 CPP. It takes a bit of effort and number crunching, but the payoff is huge: more travel, more flexibility, and smarter spending. With a bit of planning, anyone can learn to stretch their points like a pro.