Capital One Miles Value: What Are They Worth?

Why are Capital One rewards referred to as “miles” as an alternative of “factors,” regardless that they’re earned by spending with Enterprise playing cards quite than by flying? No person is aware of. However we do know the way a lot they’re price.

Primarily based on our evaluation, Capital One miles are price from 1 cent to 1.8 cents every, relying on how they’re used.

Why the massive unfold? As a result of these factors are price a flat worth when reserving journey by the Capital One journey portal, which is how many individuals use them. They are often price considerably extra when transferred to Capital One’s switch companions, however maximizing them on this method takes extra work and dedication.

You should use Capital One miles as if they have been money by reserving journey by the Capital One portal and paying with miles. They’re price precisely 1 cent apiece when used this manner, and you may’t squeeze extra worth from them.

The advantage of utilizing miles this manner is simplicity. All it’s a must to do is register, navigate to the journey portal and seek for a flight, resort room or rental automobile. Capital One will show the associated fee in each money and miles, and also you’ll select the way you need to pay at checkout.

The draw back is worth. Getting 1 cent per mile isn’t horrible, however extra worthwhile redemptions can be found when reserving with companions.

In contrast to within the earlier part, there’s no easy reply to this query. You can get way over 1 cent in worth when transferring to companions, however you can additionally get far much less when you’re not cautious. Contemplate this selection akin to buying and selling in shares quite than investing in bonds: It’s doubtlessly extra profitable but additionally carries extra uncertainty.

We estimate the worth of miles redeemed with Capital One switch companions at 1.8 cents. This determine relies on the extra worthwhile switch partnerships and ignores the lower-value switch partnerships. Savvy factors spenders ought to know which is which in the event that they need to get probably the most from their miles.

Notice: There are extra Capital One switch partnerships than what’s proven above. These are the companions for which we have now an estimated worth.

Use our calculator under to transform any given variety of Capital One miles to {dollars}, based mostly on each the baseline and BaghdadTime estimated values.

• Rewards charge: 2 miles per greenback spent.

• Bonus supply: Get pleasure from a one-time bonus of 60,000 miles when you spend $3,000 on purchases inside 3 months from account opening, equal to $600 in journey.

• Rewards charge: 1.25 miles per greenback spent.

• Bonus supply: Earn a bonus of 20,000 miles when you spend $500 on purchases inside 3 months from account opening, equal to $200 in journey.

• Rewards charge: 2 miles per greenback spent.

• Bonus supply: Earn a one-time bonus of fifty,000 miles – equal to $500 in journey – when you spend $4,500 on purchases inside the first 3 months from account opening.

• Annual payment: $0 intro for the primary yr, then $95.

For our BaghdadTime estimate of 1.8 cents per Capital One mile, we factored in a number of variables:

1. The worth of those factors when used to guide journey straight with the bank card’s journey portal.

2. The worth of the airline and resort factors to which these factors could be transferred, when relevant (based mostly on the separate analyses above).

3. The variety of top-tier journey switch companions, as decided by our knowledgeable panel.

The general worth is set as a weighted common between No. 1 and No. 2, with the burden decided by No. 3. This system with the most important variety of high-value companions receives a 100% weight on No. 2, and a program with zero high-value companions receives a 50% weight on No. 2.

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