Miles or Money Calculator

Deciding whether to spend money on travel miles or save cash for future expenses can be tricky. Our miles or money calculator helps you compare the value of travel rewards with cash savings in a simple, visual format. By inputting your current savings rate, expected future expenses, and travel reward details, you'll get a clear recommendation on which option is more valuable.

How to Use This Calculator

Using our miles or money calculator is straightforward. Follow these steps to get your personalized recommendation:

Enter your current savings balance in the "Current Savings" field.
Input your monthly savings amount in the "Monthly Savings" field.
Specify the number of months until your next major expense in the "Months Until Expense" field.
Enter the cost of your next major expense in the "Expense Amount" field.
Provide details about your travel rewards program in the "Miles Earned" and "Miles Needed" fields.
Click the "Calculate" button to see your results.

The calculator will show you how much money you'll have saved by the time of your expense, how many miles you'll have earned, and which option (saving money or earning miles) is more valuable.

Formula Explained

The miles or money calculator uses the following formula to determine which option is more valuable:

Future Savings: Current Savings + (Monthly Savings × Months Until Expense)

Miles Value: (Miles Earned / Miles Needed) × Expense Amount

Recommendation: If Future Savings ≥ Miles Value, save money. Otherwise, earn miles.

This formula helps you compare the immediate value of your saved money with the potential value of your earned miles. By considering both options, you can make a more informed decision about how to allocate your resources.

Worked Examples

Let's look at two examples to illustrate how the miles or money calculator works.

Example 1: Saving Money

Suppose you have $1,000 saved up, save $200 per month, and need to save for a $2,000 vacation in 5 months. You're also earning 10,000 miles with a travel program that requires 20,000 miles for a $2,000 credit.

Future Savings: $1,000 + ($200 × 5) = $2,000

Miles Value: (10,000 / 20,000) × $2,000 = $1,000

Recommendation: Save money ($2,000 ≥ $1,000)

In this case, saving money is the better option because you'll have $2,000 saved by the time of your vacation, which is more valuable than the $1,000 credit you could get with your miles.

Example 2: Earning Miles

Now consider someone with $500 saved, saving $100 per month, and needing to save for a $1,500 trip in 6 months. They're earning 15,000 miles with a program that requires 20,000 miles for a $1,500 credit.

Future Savings: $500 + ($100 × 6) = $1,100

Miles Value: (15,000 / 20,000) × $1,500 = $1,125

Recommendation: Earn miles ($1,125 > $1,100)

Here, earning miles is the better option because the $1,125 credit from your miles is more valuable than the $1,100 you'll have saved.

Frequently Asked Questions

How accurate is the miles or money calculator?: The calculator provides a reasonable estimate based on the inputs you provide. However, actual results may vary depending on factors like changes in your savings rate, travel reward program rules, and the timing of your expenses.
Can I use this calculator for any type of travel reward?: Yes, the calculator can be used for any type of travel reward, including airline miles, hotel points, and credit card rewards. Simply enter the miles earned, miles needed, and the value of the reward to get an accurate comparison.
What if I don't know my exact savings rate?: You can use an estimate of your savings rate to get a general idea of which option is better. If you're unsure, try different scenarios to see how changes in your savings rate affect the results.
How often should I use this calculator?: You can use the miles or money calculator whenever you're deciding between saving money or earning travel rewards. It's especially useful when you have upcoming expenses or are planning a trip.
Is there a mobile app version of this calculator?: Currently, the miles or money calculator is available as a web-based tool. We're working on a mobile app version that will be available soon.