Cents Per Point Calculator

Formula

The formula to calculate the Cents Per Point value is:

\[ \text{CPP} = \left(\frac{\text{CV}}{\text{PS}}\right) \times 100 \]

Where:

$\text{CPP}$ is the cents per point value
$\text{CV}$ is the cash value of the item or service ($)
$\text{PS}$ is the number of points spent

What is Cents Per Point?

Cents per point (CPP) is a way to measure the value of reward points or miles earned through credit cards, loyalty programs, or other promotional offers. It represents the value of each point or mile when redeemed for goods, services, or travel. Calculating the CPP helps consumers make informed decisions about the best way to use their points and whether a particular rewards program offers good value.

Example Calculation

Let's assume the following values:

Cash Value (CV) = $50
Points Spent (PS) = 5000

Using the formula:

\[ \text{CPP} = \left(\frac{50}{5000}\right) \times 100 = 1.00 \, \text{cents} \]

The Cents Per Point value is 1.00 cents.