How to use this calculator
- Enter or choose points balance.
- Enter or choose points needed per reward.
- Enter or choose value of that reward.
- Enter or choose points earned per 1 spent.
- The value you can redeem now updates as you type. Use Copy result or Share to keep it.
Method
Value per point = Reward value ÷ Points per reward; Rewards = ⌊Balance ÷ Points per reward⌋; Cashback = Points per 1 spent × Value per point
- Points per reward
- points the scheme charges for one reward
- Points per 1 spent
- earn rate per currency unit
Worked example
- Value per point = 5 ÷ 500 = 0.01.
- Rewards = ⌊12,350 ÷ 500⌋ = 24, worth 24 × 5 = 120, with 350 points left.
- Cashback = 2 points × 0.01 = 2% of spend.
- Next reward needs 150 more points = 150 ÷ 2 = 75 of spend.
12,350 points redeem for 24 rewards worth 120, leaving 350 points; the scheme returns 2% of what you spend.
What the result means
For shoppers, the cashback rate lets you compare schemes and cards on equal terms. For retailers, the value of points outstanding is a liability to account for.
Assumptions and limits
- Rewards come only in whole blocks of points.
- Every point earns the same rate and is worth the same.
- Expiry dates, bonus multipliers and redemption options worth more or less per point are not modelled.
Questions
Why is the redeemable value lower than the balance value?
Points that do not make up a full reward cannot be used yet.
Are all redemptions worth the same per point?
Not always. Some schemes give better value for some rewards; enter the reward you plan to choose.