Points Value: Is There a Right or Wrong Target?
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As Milesopedia’s credit card and rewards specialist, I’ve used Aeroplan, Marriott Bonvoy, and Amex Membership Rewards points to travel across all 7 continents, and in my experience, chasing one perfect number for your points is the wrong goal: what matters is whether a redemption gets you somewhere you couldn’t otherwise justify paying for.
Calculating points value is very easy; we detailed all the steps you should go through with your thought process in this article. However, the question of whether to redeem your points or pay with cash may linger on.
Indeed, you may have already consulted our semi-annual estimate of the value of Reward Points in Canada and found out about the target points valuation we give, but is it the proper valuation for you?
Ultimately, how can you know the accurate point valuation for your situation?
In this article, I chose Aeroplan to demonstrate the thought process you should go through, but it can apply to all airline and hotel loyalty programs.
What Are Aeroplan Points Worth?
Let’s look at possible points valuations for Aeroplan, Air Canada’s loyalty program. You can redeem your points in many ways: purchase airline tickets, merchandise, gift cards, etc.
As this program is intended for air travellers, the best use will be for purchasing airline tickets, which is a large factor in how we get our valuation of 2¢ per point. Here’s how we narrowed it down to that number:
| REDEMPTION | VALUE |
|---|---|
| Flights (Business Class, First Class) | > 6¢/point |
| Flights (Short-haul) | 4¢/point |
| Flights (Medium-haul) | 3¢/point |
| Airline ticket (Long-haul) | 2¢/point |
| Gift cards (Air Canada) | 1¢/point |
| Car rentals | 0.9¢/point |
| Air Canada Vacation Packages | 0.83 ¢/point |
| Hotels | 0.8 ¢/point |
| Gift cards | 0.7¢/point |
| Merchandise | 0.7¢/point |
| Average value | 2¢/point |
As you can see, the 2¢ per point is an average value we gave because, as per experience, it is very common and easy for anyone to achieve that target.
How to calculate points value
To assess the value of your points, you need to identify the flights you want to purchase using Aeroplan points. Then, consult Google Flights or the airline’s website to compare the prices in points versus money by searching for the value of the same itinerary but using cash.
For example, we checked a round-trip flight to San Diego, a beautiful family destination, for October 17-24, 2026, in economy class.
($600 – $244) ÷ 57,400 × 100 = 0.62¢ value per point
Interestingly, when looking at economy class versus business class redemptions, the number of points needed for the premium cabin is usually twice the cost of the former.
On the other hand, when you are paying in cash, the price isn’t 2X higher but more likely to be 3X, 4X or 5X higher.
Indeed, you can see in the screenshot below that the cost of the business class award fare in points is not even 2X the fare of economy class:
Therefore, it is easier to achieve a higher point valuation when flying in business class since the number of points you need doesn’t specifically go up as the cash price does. With a bit of good luck, you can therefore find business class cash fares that are less than twice the cost of economy!
Points Value – Opportunity Cost
What if the place you wish to visit doesn’t hit the 2¢ per point target for your travel dates? Remember, award fares on Air Canada and all cash fares are dynamically priced, so these costs will depend on your desired days to travel.
For example, we often see value under the 2¢ per point mark when searching for award fares to Europe. This is because the competition is fierce and cheap cash fares can easily be found, so your point valuation might end up below that mark, as we found when we checked a round-trip flight to Portugal for October 17-24, 2026, in economy class:
($861 – $144) ÷ 100,900 × 100 = 0.71¢ value per point
Suppose your usual objective is to earn Aeroplan points to travel to Europe in economy class. In that case, you will likely always linger around that 1.5¢ per point mark and only occasionally go above the 2¢ per point value.
However, should you still redeem your points or you should you instead pay with cash?
In these situations, you must consider opportunity cost and not just points valuations. This means asking yourself these questions:
- Do I have other plans for these points where I can employ them at a 2¢ per point value or higher?
- Do I have the means to pay $5,000 for the airplane tickets?
- Do I have other more profitable use for that amount of money?
If you travel often, you will have a better chance of having other opportunities to redeem your points for something of higher value.
For example, you could save those 285,000 Aeroplan points and pay the $5,000 for your family trip to Portugal, if you were also planning a romantic getaway to Europe without the kids in business class not too long after. This couples trip will either cost 280,000 Aeroplan points or $12,000 for the two of you.
Additionally, you must also remember that points are there to help us reduce our costs. For some, $5,000 can be a lot of money, and points can make the difference between being able to travel or not going at all.
For many, instead of spending $5,000, it might be better to use your points rather than leaving them sitting and doing nothing in your account, especially if you don’t have any better use for them in the short term. By doing this, your points can pay for your airfare, and the money you didn’t spend on the flights can cover your accommodation, excursions, and restaurant bills instead.
Additionally, even if you can afford to pay for the flights in cash, redeeming points instead means you can utilize that $5,000 for other purposes. You can easily find another way to spend or save that amount.
Did you max out your kids’ RESP (Registered Education Savings Plans)? By investing $2,500 per kid in their RESP, you can obtain a 30% government grant. That money will grow with compound interest while your points won’t. So, is it preferable to put that $5,000 towards Portugal or max out your children’s RESP for the year?
No kids? How about maxing out your Registered Retirement Savings Plan (RRSP) for an income tax refund?
Importantly, points are not an investable asset — cash is.
Therefore, if you are waiting for a potential high-value redemption that may or not come around, you might be better off redeeming your points when you have a chance, especially if you have concrete projects you can use your cash for. That said, only you will know what is most appropriate for your situation.
Points Value – Earn and Burn
When earning points, it is advisable to use (burn) them before they get devalued. Indeed, loyalty programs are always at the mercy of chart revamping, more commonly known as devaluation. While 285,000 Aeroplan points may be enough for your family trip to Portugal today, it may be a different story next year.
Points devaluation is similar to what inflation does to cash; the difference is that money can be invested to counter the effects of inflation.
While we encourage saving your points for high-value redemptions, these goals shouldn’t be set too far out in the future. Specifically, you should plan to use your points every two years or so. After that span of time, while a devaluation might not be guaranteed, chances are that prices will have gone up, and you’ll still need more points for the same objective.
Points Value – Easiness to Earn
Points may be easier to earn than cash. Indeed, with all the generous sign-up bonuses out there, one or two credit card memberships might be enough for you to reach your points goal. For example, if two parents sign up for the TD® Aeroplan® Visa Infinite* Card, they could earn more than enough points for a family getaway in North America or further abroad, depending on the award fares available.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 |
Just take ten minutes to sign up for your accounts, then use your credit cards to pay your usual bills and voilà! You will have a boatload of points. Comparably, earning an equivalent amount of cash to match this points valuations might take a lot longer depending on your job and salary.
You can find the best current credit card offers here:
Now, if you never seem to reach the target valuation everyone talks about, you may want to ask yourself whether or not you’ve chosen the right program for your situation.
Indeed, if you love all-inclusive resorts but opted for Aeroplan points, you will likely be stuck with a 1¢ per point valuation for all your holidays, as this is what Aeroplan points are worth when redeemed for that kind of trip.
But hey, if you got those points for free from a sign-up bonus and have no other plans for them, why not use them instead of burning cash? Just adjust your strategy for the next one!
Bottom Line
Calculating points valuations is super easy – it’s simple math. However, interpreting the results may be more difficult as there are many personal things to consider.
There is no right or wrong value if points help you achieve something you wouldn’t have been able to do without them. That is the basis of “travel hacking”: use points to save money.
Finally, don’t let your points get devalued while waiting and hoping for a better redemption that may or may not come!
Points truly only have value once they are redeemed, and how you employ them will dictate your personal point valuation target.
- Annual fee
- $599
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$2,000Total$2,000Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $2,000
- Welcome offerAfter $24,000 in 12 months
- Up to 100,000 points
Apply Now
on TD's website
Frequently Asked Questions
What is considered a good value per point for Aeroplan?
On average, redeeming Aeroplan points for flights lands around 2 cents per point when you fly economy on a long-haul route. Business and first class often push the value higher, sometimes above 6 cents per point, while gift cards and merchandise rarely go past 1 cent per point.
Is there one correct point valuation target for every loyalty program?
No. Each program has its own average redemption values, but your actual valuation depends on the flights, dates, and cabin you choose. A number that works for Aeroplan won’t automatically apply to Amex Membership Rewards or another program.
Should I redeem my points or pay cash for a trip?
It depends on opportunity cost, not just cents per point. If you have another, higher-value use for your points, or if paying cash frees up money for a priority like an RESP contribution, cash might be the smarter choice even when the point valuation looks good.
How long should I wait before redeeming my points?
We recommend using your points within about two years. Loyalty programs regularly devalue their redemption charts, so points that cover a trip today may not stretch as far next year.
Is it easier to earn points or cash?
Points are often easier to accumulate quickly, especially through generous credit card welcome bonuses. Earning the equivalent amount in cash usually takes longer and depends on your income.
Why do point values change depending on the destination?
Award flight prices and cash fares are both dynamically priced. Highly competitive routes, like flights to Europe, often have cheap cash fares available, which lowers the value you get per point compared to less competitive routes.
What if I never reach the average point valuation target?
If your redemptions consistently fall short of a program’s average valuation, it may be worth reconsidering whether you picked the loyalty program that best matches how you actually travel.
