Asked on 02 Dec 2019
This is one of the most important figures you'll need to play the miles game. I personally use 1.8 cents per KrisFlyer mile, down from 2 cents a couple year back. This isn't an exact science- I've based it off the prices I know miles can be bought for (e.g through CardUp, RentHero, annual fees) and the value I know I can get for them.
Since it's a personal figure, I'm curious to hear how others came to theirs.
Top Contributor (Dec)
I use 1.8 cpm personally, but there's no real mathematics behind that, other than reading the opinions of other and then deciding for myself what number would work for me. For citi miles, still 1.8cpm, but a little more valuable due to the number of transfer partners.
I value miles at 1.6 cents per mile - there is no right or wrong answer, nor a proper evaluation to it. This is merely my judgement based on my spending. =)
Also, I never purchase miles as these are unnecessary expenses incurred solely for the accumulation of miles and no other tangible or intangible benefits. Instead, I accumulate miles by the way of spending on a good or service.
Here is everything about me and what I do best.
For me, I use the reasonable price/price I am willing to pay for a flight ticket as reference and compare this against the miles required to redeem an award seat. This would mean my valuation of a mile can range from ~1.6cents per KF miles for an economy saver redemption to 4 cents per KF mile for a business saver redemption.
I also take this as meaning I am getting a rebate as high as 16% on cards that generate 4mpd.
I'm still using the old 2.0 cpm for easy calculations, but MileLion gives the most accurate information imo.
Meanwhile, I'm squirreling away the miles, 1 transaction at a time (maximizing FCY on my OCBC 90°N @ 4MPD, while it lasts till 28/02/2020).
I would value my miles at 1.8 cents per mile based of citi miles, using that as a benchmark for easier calculation.