Cash or Miles: When to Choose Each for Airline Tickets

The busy summer travel season is in full swing, and millions of Americans are facing the same dilemma: Should they use their hard-earned miles or hard-earned cash to pay for their next flight? The right answer depends on several factors, including the cost of the flight, the value of their miles and their travel goals. The guide will outline ways to make an informed decision that maximizes value based on your specific circumstances.

Earning passive income doesn’t need to be difficult.
You can start this week.

Quick Tips to Help You Decide If You Should Use Cash or Miles

This guide will elaborate on the following simple situation-based assessments further down the page, but generally:

Use miles when the cash price is high or you’re getting at least 1.5 cents per mile.
Use cash when the
fare is cheap
or you want to earn points or elite status.
Always compare the value of miles vs. the cash price before booking.

How to Choose Between Using Miles and Cash

Frequent flyer “miles” aren’t really about distance anymore–they function more like credit card points. You earn them by spending and redeem them for travel, often with varying value. To get the most out of your rewards, ask yourself these four key questions before deciding whether to use miles or pay cash for your flight:

What’s the current cash cost of the flight?
How many miles does it take to book the same trip?
Are you trying to earn elite status or credit card rewards?
Do your miles expire soon or have limited redemption value?

How to Calculate the Value of Your Miles

Two of the four key questions are how much the flight costs and how many miles it takes to book it. You’ll use the answers to determine the value of airline miles with a simple but effective formula.

Subtract taxes and fees from the cash price of your flight
Divide the difference by the number of miles required
The quotient is the cents-based value of each mile.

A common industry benchmark is that 1.5 cents per mile is a strong redemption value, although more is always better. If it’s less, it might make more sense to pay with cash.

For example:

A flight costs $346, including $46 in taxes and fees, and requires 25,000 miles to book.
$346 – $46 = $300
$300 ÷ 25,000 = 1.2 cents per mile, which is less than the acceptable threshold.

When It Makes Sense to Use Miles

With the cash value of your miles calculated, there are some scenarios where it could be the best time to use miles, even if the formula yields a slightly unfavorable value.

You’re booking a last-minute flight and cash prices are inflated
You’re redeeming for
international
, business or
first-class tickets
You’re using points through a high-value transfer partner
You’re light on cash but have miles to burn

When It’s Smarter to Pay Cash

It’s usually better to pay cash for flights in other situations, like these:

Flights are already cheap or on sale
You want to continue amassing airline miles or credit card points
You’re aiming for elite status qualification
The redemption value is especially low (under 1.2 cents per mile)

Other Factors That Could Influence Your Cash or Miles Decision

There are several additional factors that can tip the scales on your decision. For example, it often makes sense to use cash and redeem airline miles later when award booking fees or airline surcharges are high. Cash is also often the best choice when flights are refundable or covered by travel insurance.

It’s often best to use points for flights if there’s an upcoming
devaluation of your miles
or you’re facing redemption restrictions. Finally, consider your travel flexibility, as award flights may have limited availability.

Can You Use Both Cash and Miles?

Some rewards programs let you use miles and cash for the same purchase. It’s called mixed redemption, and it can be useful when you don’t have enough miles for a full award but want to save money.

Keep in mind, partial redemptions often come with a reduced per-mile value.

How to Get More Value From Your Cash and Miles

No matter the
airline
or credit card rewards program, the following tips can help you get more from your miles.

Use a free online miles vs cash calculator to crunch the numbers
Be flexible with travel dates and destinations
Use transfer partners when available
Book early for high-demand routes
Watch for special redemption offers and bonuses

Bottom Line: There’s No One-Size-Fits-All Answer for Using Cash or Miles

There’s a formula for determining the value of your miles, and in certain situations, either cash or miles typically makes more sense. However, there’s no cookie-cutter answer that will deliver the most value in all cases. The key is to run the numbers and consider the context of each trip. Always check your miles redemption values, think about your long-term travel plans, factor in your current cash savings, check for looming devaluations and follow miles-maximizing best practices like staying flexible and booking early.

FAQ

Here are answers to some of the most commonly asked questions about saving money on airline tickets.

When is it worth using miles instead of cash?
- When the redemption value is high — generally above 1.5 cents per mile — or the cash price is unusually expensive.
How do I know if my miles are worth using?
- Calculate the cents-per-mile value using the formula. If you’re getting a solid return, it’s worth considering.
Should I save miles for a bigger trip?
- Yes, especially if you’re planning international or premium-class travel, where miles tend to go further.
Do I earn rewards or status when I use miles?
- Typically, no — you won’t earn airline miles, elite qualifying segments, or card points when booking with miles.