What are your points worth? How to value a point

Ask what a Qantas Point is worth and you'll get different answers. Point Hacks says 1.6 cents. Points Path, which tracks real reward searches, puts the median at 1.1 US cents, about 1.7 Australian cents. Finder's range runs from half a cent to seven.

They're all right. The same point can be worth half a cent or seven cents. What decides it is what you spend it on and how you work out the value. This guide gives you the formula, typical values for 2026, and the two mistakes that make a redemption look better than it is.

What is a point worth?

A point is worth whatever it saves you on something you'd otherwise pay for. For Qantas and Velocity, that's usually 1 to 2 cents per point on flights, more in business class and less on gift cards or products. Point Hacks currently values Qantas Points at 1.6 cents and Velocity Points at 1.7 cents.

The formula

To value any redemption:

(Cash price − taxes and charges on the reward) ÷ points needed = value per point

Say a flight costs $600 in cash, or 30,000 points plus $52 in taxes. That's ($600 − $52) ÷ 30,000 = about 1.8 cents per point.

Two mistakes make this number look better than it is:

1. Forgetting the taxes. Reward bookings still carry taxes and carrier charges, sometimes hundreds of dollars on international business class. Always subtract them.
2. Using a price you'd never pay. A business class seat might cost $8,000, but if you'd never spend more than $3,000 on that trip, the $3,000 is the honest number. Value what the redemption actually saves you.

Typical values in 2026

Estimates from Finder (Qantas, August 2026; Velocity, May 2026) and Point Hacks. Values move with fares.

The pattern is the same in both programs. Flights booked as rewards beat everything else, premium cabins beat economy, and anything priced off a cash fare sits near a fixed, low rate.

What's a good redemption?

Use these rough benchmarks:

• Under 1 cent: poor. Only worth it if your points are about to expire.
• 1 to 2 cents: fine. This is where most real redemptions land.
• 2 cents or more: good. Take it.
• 4 cents or more: excellent. Usually business class on a long flight, booked early.

Another useful test is the cost to buy points. Qantas sells points for as little as about 2.7 cents each in its biggest bundle, 150,000 points for $3,999. If a redemption is worth less than what you could buy the points for on sale, the cash price may be the smarter choice.

How programs see a point

To a program, a point is a liability on the balance sheet: a promise to provide something later. Partners pay the program when they issue points, and the program bears a cost when you redeem them.

That explains the menu you see. Redemptions that cost the program close to their face value, like gift cards and products, are easy to find and fixed at a low rate. Redemptions where you capture far more value, like a business class seat that would otherwise fly empty, are limited and priced in bands. The best value is always the one the program rations.

How to get more from every point

• Target reward seats, not cash-priced bookings. It's the single biggest lever.
• Book early and stay flexible. Reward seats are released in limited numbers.
• Consider business class on long flights. It's where the value per point is highest.
• Don't hoard. Programs raise prices over time, so a point saved for years usually buys less.
• Check the maths every time. Two minutes with the formula stops you spending 50,000 points on a $300 seat.

What I'd do this week

1. Pick one trip you'd like to take with points.
2. Price it in cash and in points on the dates you'd travel.
3. Run the formula, remembering to subtract the taxes.
4. If it's under 1 cent, keep the points and pay cash.

New to points? Start with Loyalty points in Australia: a beginner's guide. Ready to book? Reward seats: why they're hard to find and how to book them is next.