## Credit Cards

Frequent Contributor
Posts: 292
Registered: ‎10-25-2011

# How much is 1 united mile worth? Anybody know?

How do you calculate this? What are the variables? Has anyone ever tried to calculate this?

My contributions back to myfico forums:

The CSP-Freedom-Chase Checking Trifecta decoded:
http://ficoforums.myfico.com/t5/Credit-Cards/CSP-Freedom-Checking-Use-wisely/td-p/1355519
Frequent Contributor
Posts: 470
Registered: ‎02-07-2011

# Re: How much is 1 united mile worth? Anybody know?

I think it's notoriously difficult to calculate the cash value of a reward point, but here's what I'd do:

Pick a random United flight, or better yet, average five or so... Total up the cost of them and divide by the number of points needed to take them. Should at least give you some kind of metric.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
New Contributor
Posts: 82
Registered: ‎08-04-2011

# Re: How much is 1 united mile worth? Anybody know?

It all depends on what you use it for, I'll give a few examples.  These are made up numbers based on a round trip just fyi.

Domestic Coach Ticket - 25k miles for a \$400 flight your value would be about 1.6 cents a mile.

International Coach Ticket - 60k miles for a \$1,000 flight your value would be about 1.67 cents a mile

Here's where the value increases...

International Business Ticket - 100k miles for a \$3,000 flight your value would be about 3 cents a mile

International First Class Ticket - 150k miles for a \$6,000 flight your value would be about 4 cents a mile

Valued Contributor
Posts: 2,602
Registered: ‎02-09-2012

# Re: How much is 1 united mile worth? Anybody know?

boardingarea.com

Starting Score: TU:650 - EQ: 672
Current Score: TU: 706 - EQ: 680 - EX: 699
Goal Score: 700

Take the myFICO Fitness Challenge
Valued Contributor
Posts: 1,357
Registered: ‎01-22-2012

# Re: How much is 1 united mile worth? Anybody know?

longhorn11 wrote:

It all depends on what you use it for, I'll give a few examples.  These are made up numbers based on a round trip just fyi.

Domestic Coach Ticket - 25k miles for a \$400 flight your value would be about 1.6 cents a mile.

International Coach Ticket - 60k miles for a \$1,000 flight your value would be about 1.67 cents a mile

Here's where the value increases...

International Business Ticket - 100k miles for a \$3,000 flight your value would be about 3 cents a mile

International First Class Ticket - 150k miles for a \$6,000 flight your value would be about 4 cents a mile

+1.

The real value for united miles is in premium-cabin international redemptions. I wouldn't bother using them for anything else, except MAYBE transcontinental economy tickets (for 25k) when the price is already high ~\$500+. You can get some great values in business/first redemptions to Asia and Europe.

The other occasion where I might consider using it is with stopovers/open-jaws to avoid paying for an additional domestic ticket.

Overall I'd say they're worth ~2 cpm, but as always YMMV.

FICOs: EX: 800, EQ: 813, TU: 807

Bank of America Privileges with Travel Rewards Visa Signature (EMV) - \$23,200 CL
Chase Sapphire Preferred Visa Signature - \$12,700 CL
Chase United MileagePlus Club World Elite MasterCard - \$25,000 CL
J.P. Morgan Ritz Carlton Visa Signature - \$23,500 CL

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.