This fundamental question lies at the core of every decision you make in the miles and points game. Two of the most common questions asked are:
Is it "worth it" to pay a 3.25% foreign currency transaction fee to earn miles overseas?
Spoiler answer: Yes, if it earns 4 miles per dollar with UOB VS.
Is it "worth it" to pay a S$192.60 annual fee for 10,000 miles?
Spoiler answer: I wouldn't, but you might if you need the miles for your next business class redemption.
While the value of a mile is ultimately subjective, I’ll use some of my own data from flight redemptions to estimate what I believe it’s worth. From there, you can decide what value to assign to a mile based on your preferences.
Lower Limit: How much do Singapore Airlines think a KrisFlyer mile is worth?
When using KrisFlyer miles for partial payment on a full-fare revenue ticket, Singapore Airlines offers a redemption value of just 1.02 Singapore cents per mile. While this option provides flexibility by not requiring award availability, it delivers poor value and is generally not recommended. However, it does set a benchmark—if you can acquire KrisFlyer miles for less than 1.02 cents each, you won’t technically be at a loss, as long as you intend to use them for Singapore Airlines flights in any class.
Upper Limit: How much value have I gotten out of a Krisflyer mile?
In my earlier post "A Look Back at My 2024 KrisFlyer Journey: Miles Earned & Redeemed"I shared that we redeemed 2.0 million miles in 2024 for 23 business class flights, with a retail price of S$66,000, averaging 3.24 cents per mile. Our redemptions were a mix of 40% Business Saver and 60% Business Advantage. This remains a solid redemption value, especially considering the highest rate I paid for miles in 2024 was UOB's 3 miles per dollar for regional spend, which worked out to about 1.08 cents per mile.
However, calculating redemption value based on the retail price of business class flights assumes that the ticket is truly worth that amount to you—meaning you'd have been willing to pay cash for it. In reality, most people wouldn’t, so the redemption doesn’t equate to actual cash savings.
For example, I often buy NTUC groceries, so I would almost value the NTUC voucher at its full redemption value since I was going to spend that money anyway. On the other hand, I wouldn’t assign the same value to a voucher for a branded bag as its stated redemption value. Similarly, while a business class ticket might have a high retail price, if I wouldn’t have paid cash for it, the actual savings from redeeming miles for it are much lower than its retail value.
My Model for Valuing KrisFlyer Miles
To assess the true value of my miles, I created a model that compares the price of a flight in economy and then applies a multiplier to reflect the upgrade to business class. I calculated the multiplier by taking the number of hours spent on the flight and multiplying it by 0.05. This multiplier reflects the additional comfort and experience I value from flying business class.
For example, if the economy price for Flight A, a 10-hour flight, was $500, the model would suggest that I’d be willing to pay $500 multiplied by 10 hours and then by 0.05, which equals $750, for the business class option. This helps me evaluate how much I value the upgrade, and by using this multiplier, I can more accurately quantify the value of my miles in relation to the economy price, ensuring it aligns with my personal assessment of the flight’s worth.
Realistic Value of My Miles
Based on my 2024 data, my "perceived" value of my redeemed flights was brought down to a more "realistic" 1.43 cents per mile, which aligns with the commonly-held benchmark of 1.5 cents per mile in the Singaporean miles community. I view my redemption value as an upper limit for purchasing KrisFlyer miles. When buying miles, you’re exchanging something flexible like cash for something often quite restrictive, such as award availability. Therefore, it doesn’t make sense to buy miles at your average redemption rate.
At What Rate Should I Buy KrisFlyer Miles?
My personal ceiling for buying KrisFlyer miles is now 1.1 cents per mile, representing a 25% discount from my average redemption value, for several reasons:
KrisFlyer miles don’t offer the same flexibility as cash.
Singapore Airlines can devalue miles at any time.
There’s a effort required to track my miles collection.
How do you value a KrisFlyer mile, and what methodology do you use? Feel free to share your thoughts in the comments section.
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