1. What is CPM Calculation?

CPM (Cents Per Mile) calculation helps determine the value of reward points or miles by comparing the cash price of an item to the number of points required. It measures how many cents each point/mile is worth when redeemed.

2. How Does the Calculator Work?

The calculator uses the CPM formula:

Where:

• \( \text{cash price} \) — Actual price in dollars ($)
• \( \text{points} \) — Number of points/miles required

Explanation: The formula converts the dollar-to-points ratio into cents, making it easier to compare the value of different reward programs.

3. Importance of CPM Calculation

Details: Calculating CPM helps maximize the value of reward points, compare different redemption options, and make informed decisions about point usage in loyalty programs.

4. Using the Calculator

Tips: Enter the cash price in dollars and the number of points required. Both values must be positive numbers. The calculator will show the value in cents per point/mile.

5. Frequently Asked Questions (FAQ)

Q1: What is a good CPM value?
A: Generally, 1 cent per point is considered baseline value. Values above 1.5 cents are good, and above 2 cents are excellent.

Q2: Should I always choose the highest CPM option?
A: While higher CPM indicates better value, also consider your personal preferences and redemption flexibility.

Q3: Does this work for all reward programs?
A: Yes, this calculation works for airline miles, hotel points, credit card points, and other loyalty programs.

Q4: Are there any limitations to this calculation?
A: This calculation doesn't account for taxes, fees, or the opportunity cost of using points vs paying cash.

Q5: How often should I calculate CPM?
A: Calculate CPM for each redemption opportunity, as values can vary significantly between different redemption options.