Cash-Equivalent Value

Last reviewed September 14, 2026

Cash-equivalent value is the dollar amount a points or miles balance is worth at a chosen redemption rate, used to compare reward currencies against plain cash back.

One point is not one cent. Transferable points can be worth more than 1¢ when redeemed for travel and less when taken as cash. A consistent cash-equivalent rate makes comparisons fair.

Pikt assigns each reward type a cents-per-point value and reports earnings in dollars so a 4× points purchase and a 3% cash-back purchase can be ranked head to head.

Related terms

Fair Point Comparison: Pikt converts every card's points, miles, and cash back into a single dollar figure so different reward types can be compared fairly.
Category Multiplier: A category multiplier is the rate at which a card earns rewards in a given spending category — e.g. 4× points on dining or 6% back at U.S. supermarkets.
Cents-Per-Point (CPP): Cents-per-point (CPP) is the dollar value assigned to one point or mile — a redemption's cash value divided by the points it cost — and it's the standard way to compare points or miles against flat cash back.

All glossary terms