How Much Are Loyalty Points Worth? A Simple Way to Work It Out

By KT Apps · Updated October 17, 2026

A note first

This article is general information about how loyalty programs and coupons usually work, not financial advice. Every program has its own terms, which can change; always check the current rules of the programs you use.

Step 1: the value of one point

Find a reward you would actually use and divide its cash value by the points it costs:

Value per point = reward value / points needed

For example, if 200 points get you 3 off your shopping, each point is worth 3 / 200 = 0.015, or 1.5 cents (or pence) per point.

Many programs offer several rewards at different rates. Work out the value for the rewards you would really choose, not the best-looking one in the brochure.

Step 2: the percentage you get back

Multiply the value per point by the number of points you earn for each unit you spend:

Return = points per unit spent x value per point

Example A

You earn 2 points per dollar and 200 points are worth 3. The return is 2 x 0.015 = 0.03, or 3 percent. You need to spend 200 / 2 = 100 to earn the reward.

Example B

You earn 1 point per dollar and 100 points are worth 1. The return is 1 x 0.01 = 1 percent, even though the numbers look round and simple.

A coffee-shop stamp card works the same way: if the tenth drink is free, you get one free drink for every nine you pay for: 1 / 9 is about 11 percent back on what you spend, or one drink in ten free.

Percent off or amount off?

Coupons come in two common forms, and which is better depends on how much you spend.

• A percentage discount grows with the bill: 20 percent off a 30 purchase saves 6.
• A fixed amount stays the same: 5 off saves 5 whatever you spend, as long as you meet any minimum.

To compare them, divide the fixed amount by the percentage. With 5 off versus 20 percent off, the break-even point is 5 / 0.20 = 25. Below 25 the fixed 5 saves more; above 25 the percentage saves more.

A minimum spend changes the picture too. 5 off a minimum spend of 40 is a 12.5 percent discount only if you would have spent 40 anyway. If the minimum pushes you to buy extra, the real saving is smaller.

Expiry and other ways points lose value

A generous earn rate is worth nothing if the points vanish before you redeem them. Common rules to look out for include:

• Points that expire on a fixed date, or a set time after you earn them.
• Points that expire after a period with no activity on the account.
• Rewards that can only be redeemed in fixed blocks, so a balance just below the threshold buys nothing.
• Programs that change their reward rates, which can lower the value of points you already hold.

Writing down each card's balance and expiry date, and checking it now and then, is the simplest protection. If a balance is close to a reward, it may be worth redeeming on your next planned shop rather than waiting.

Comparing your programs

Once you have a percentage for each program, you can see at a glance which ones reward the way you actually shop. A 3 percent program at a shop you visit once a year is worth less to you than a 1 percent program at your weekly supermarket. Points should follow your shopping, not the other way round.

Keeping balances in Coupon

Coupon has a separate Point Cards tab for loyalty programs:

1. Add a card with its name, a note and an expiry date. The note is a good place for the earn rate and value you worked out, such as "2 pts per 1, 200 pts = 3 off, about 3%".
2. Tap the card to see its details and current points, then choose Add Points and enter what you earned.
3. Sort the list by points to see which cards are closest to a reward, or by expiry date to see which balances are at risk.
4. Items expiring within seven days are highlighted in red.

The balance is a running total you update yourself; Coupon does not connect to loyalty programs and keeps no history of individual earnings or redemptions. On the web, data stays in this browser; the iPhone and Android apps can also send expiry reminders. For the coupon side, see how to organize coupons.

Frequently asked questions