1. What is Points Per Dollar?

Points per dollar is a metric that shows how many reward points you earn for each dollar spent. It helps compare the value of different reward programs or credit cards.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• Total Points — The reward points earned
• Spend — The amount spent in dollars

Explanation: This calculation shows the earning rate of your reward points relative to your spending.

3. Importance of Points Per Dollar

Details: Understanding your points per dollar helps maximize rewards, compare credit card benefits, and make informed spending decisions to optimize rewards.

4. Using the Calculator

Tips: Enter your total points earned and the amount spent in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good points per dollar ratio?
A: Typically 1 point per dollar is standard, premium cards may offer 2-5 points per dollar on certain categories.

Q2: Does this include sign-up bonuses?
A: You can include them for overall value, but exclude them for ongoing earning rate calculations.

Q3: How does this differ from point value?
A: Points per dollar shows earning rate, while point value shows what each point is worth when redeemed.

Q4: Should I calculate this per transaction or overall?
A: Both are useful - per transaction shows category bonuses, overall shows your average earning rate.

Q5: How can I improve my points per dollar?
A: Use cards that offer bonus categories, take advantage of promotions, and shop through reward portals.