How to Calculate the Value of Purchased Airline Miles

Airline miles are a type of reward currency that you can earn by flying with a specific airline or using a co-branded credit card. You can also buy airline miles from the airline or from third-party brokers, usually at a discounted rate compared to the face value of the miles. But how do you know if buying airline miles is worth it? How do you calculate the value of purchased airline miles and compare it to the cost of your desired flight?

The value of purchased airline miles depends on several factors, such as the airline, the destination, the travel class, the availability of award seats, and the fees and taxes involved. There is no fixed formula to calculate the value of purchased airline miles, but you can use some simple steps to estimate it and decide if buying miles is a good deal for you.

Step 1: Find out how many miles you need for your desired flight

The first step is to check how many miles you need to book your desired flight with the airline you want to fly with. You can do this by using the airline’s website or app, or by calling their customer service. You can also use online tools like AwardHacker or AwardMapper to compare different airlines and programs.

For example, let’s say you want to fly from New York to London in business class with American Airlines. According to their award chart, you need 57,500 AAdvantage miles for a one-way saver award ticket. If you want to fly round-trip, you need 115,000 miles.

Step 2: Find out how much it costs to buy the miles you need

The next step is to find out how much it costs to buy the miles you need from the airline or from a third-party broker. You can do this by visiting their websites or contacting them directly. You should also check if there are any promotions or discounts available that can lower the price per mile.

For example, let’s say American Airlines is selling AAdvantage miles for 2.15 cents per mile, which is their regular price. If you want to buy 115,000 miles, you need to pay $2,472.50. However, let’s say they are also running a promotion that gives you a 40% bonus when you buy at least 100,000 miles. In that case, you only need to buy 82,143 miles for $1,766.07 and get 32,857 bonus miles for free. That lowers your price per mile to 1.53 cents.

Step 3: Find out how much it costs to book your desired flight with cash

The third step is to find out how much it costs to book your desired flight with cash instead of miles. You can do this by using online travel agencies like Expedia or Kayak, or by checking the airline’s website directly. You should also factor in any fees and taxes that are not included in the base fare.

For example, let’s say the cheapest business class ticket from New York to London with American Airlines costs $3,500 round-trip, including all fees and taxes.

Step 4: Compare the value of purchased miles with the cost of cash ticket

The final step is to compare the value of purchased miles with the cost of cash ticket and see which one is cheaper. To do this, you need to divide the cost of cash ticket by the number of miles required for the same flight. This will give you the value of one mile in terms of cash.

For example, let’s say you divide $3,500 by 115,000 and get 0.0304. This means that one AAdvantage mile is worth about 3 cents when redeemed for this flight.

Now, you need to compare this value with the price per mile that you paid when buying miles. If the value is higher than the price per mile, then buying miles was a good deal for you. If the value is lower than the price per mile, then buying miles was not worth it for you.

For example, let’s say you compare 3 cents with 1.53 cents and see that buying miles was a good deal for you in this case. You saved about $1,734 by buying miles instead of paying cash for this flight.

However, keep in mind that this is just an example and that the value of purchased miles can vary depending on different factors and scenarios. You should always do your own calculations before buying or redeeming miles.

Calculate the number of miles you can earn on your next trip with our airline mileage calculator – https://www.themileageclub.com/miles-calculator 

If you want to earn more airline miles without buying them, one of the best ways is to fly more often and use a co-branded credit card that rewards you with airline miles for your purchases. However, different airlines and credit cards have different earning rates and rules, so it can be hard to keep track of how many miles you can earn on your next trip.

That’s why we created our airline mileage calculator, a simple and convenient tool that helps you estimate how many miles you can earn on your next flight with any airline and any credit card. All you need to do is enter some basic information about your trip, such as the origin, destination, airline, travel class, and credit card. Our calculator will then show you how many miles you can earn from the flight itself and from the credit card spending. You can also compare different airlines and credit cards to see which one gives you the most miles.

Our airline mileage calculator is based on the latest information and data from the airlines and credit card issuers, so you can trust its accuracy and reliability. However, please note that our calculator is only an estimate and that the actual number of miles you earn may vary depending on factors such as fare class, booking channel, promotions, taxes, fees, and changes in the airline or credit card programs. You should always check the official websites of the airlines and credit card issuers for the most up-to-date information and terms and conditions.

Using our airline mileage calculator is easy and free. Just visit our website at https://www.themileageclub.com/ and start planning your next trip with more miles in your account. Happy flying!