Cash Back vs Travel Points

Cash Back vs Travel Points Calculator

Travel points can be worth far more than cash back, or far less, depending entirely on how you redeem them. This calculator cuts through the hype by comparing a flat 2% cash back card against a travel points card using four inputs you control: your annual spend, the share that goes to travel and dining, the points multiple on that share, and the value you assign to each point in cents.

The cash path is straightforward at 2% of everything. The points path earns the higher multiple on travel and dining and one point per dollar elsewhere, then values those points at the cents per point you choose. That last number matters most. A point redeemed for cash is often worth one cent, while the same point booked through a transfer partner might fetch two cents or more. Your assumptions drive the result.

The honest takeaway is that points cards reward people who spend heavily in bonus categories and redeem at high value. If you book travel often and chase good redemptions, the points path can pull ahead by a wide margin. If you mostly want simplicity and redeem points for statement credits, a flat 2% card frequently wins. Set the inputs to match how you really spend and redeem, not the best case a card issuer advertises.