Points transfers
The math behind a 25% points transfer bonus
A transfer bonus can lower the cost of an award. The base ratio, transfer increments and cash fare decide whether it is worth using.
By Jason Reza · Published · 3 min read
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What the bonus actually saves
A flight costs 40,000 airline miles. You have an offer that adds 25% when you transfer bank points at a 1:1 ratio. How much should you send?
The answer is 32,000 points: 32,000 × 1.25 = 40,000. You keep 8,000 bank points, a 20% saving against the usual transfer cost. The offer and award price here are examples; the calculation works with the figures in your account.
Calculate the points required
Divide the award price by the amount one bank point produces. At 1:1 with a 25% bonus, that is 40,000 ÷ 1.25 = 32,000. A 50% bonus would bring the amount to about 26,666.67 before transfer increments.
For any ratio: bank points needed = partner points required ÷ [partner points per bank point × (1 + bonus rate)].
| Scenario | Award miles needed | Bank points required | Bank points saved |
|---|---|---|---|
| 1:1, no bonus | 40,000 | 40,000 | 0 |
| 1:1 + 25% bonus | 40,000 | 32,000 | 8,000 |
| 1:1 + 50% bonus (before increments) | 40,000 | ≈26,666.67 | ≈13,333.33 |
Watch the base ratio
A 25% bonus on a 1:0.7 transfer produces only 0.875 airline miles per bank point. The same 40,000-mile award would need about 45,714.29 bank points.
With 1,000-point increments, you would send 46,000 points and receive 40,250 miles. A plain 1:1 transfer from another eligible account would cost 6,000 fewer bank points. Compare the final conversion, not just the bonus percentage.
Account for transfer increments
Suppose the bonus is 50%, but transfers must be in 1,000-point increments. The theoretical 26,666.67-point transfer becomes 27,000, producing 40,500 airline miles. The usable saving is 13,000 bank points, or 32.5%.
Check when the bonus arrives, too. If the airline credits it separately after a delay, the base transfer alone may not be enough to book the seat.
Compare the cash fare
Now price the flight in cash. At $600, an award requiring 32,000 bank points plus $100 avoids $500 of cash spending. That works out to about 1.56 cents per bank point.
If those points could otherwise cover $320 of eligible travel, the award provides $180 more value. But a suitable $350 cash fare changes the answer: the award would avoid only $250 after its $100 charge. Use the points for the $320 alternative instead.
Before you transfer
Transfers can be final, and sending points does not reserve a seat. Before moving points, check:
- Seats for every traveler, on the dates and in the cabin you want.
- Your card’s base ratio, transfer minimum and increments.
- The offer deadline, bonus cap and expected posting time.
- The cash due, cancellation rules and whether an award hold is available.
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