Author Topic: Figuring Out the Math  (Read 7080 times)

Offline ckmk47

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Re: Figuring Out the Math
« Reply #60 on: September 11, 2014, 06:20:02 PM »

If you're hitting a spending threshold when making a purchase, you're effectively getting more ppd (point per dollar) of spending.


So, for example, a metro card purchase of $100.
With the Sapphire Preferred you get 2 ppd on travel (so with the with 7% dividend): 3.75% 
-Sapphire Preferred without 7% dividend: 3.5%
If URs are worth 1.7 cpp (.017 cents per point)  you're earning 6.375 or 5.95 cents on the purchase.


If you're earning a bonus on another card though,  that purchase is in effect earning more than 1 ppd. 
For example the Delta card.  50,000 points for spending (IDK) $5000 (?).  Then
50,000 points    =      ??
$5000                     $ 1


or 10 points earned for each dollar of spending.
Even if each point is worth only .01  (1 cent) it's still more than what is earned with the SP.


Offline @Yehuda

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Re: Figuring Out the Math
« Reply #61 on: September 11, 2014, 06:53:06 PM »
Don't understand how you got your SP numbers. Travel is 2ppd which means 2% or 2.7% with the annual dividend.
And yes, technically if you hit the spending bonus on a card, then ANY purchase would be more valuable if done on that card. But there are free/cheap ways to do MS for bonuses, therefore you should save specific purchases like MetroCard for the card that would benefit you the most. If you hit a bonus via MetroCard and then used an SP for AP, you would not have gotten the best value for the purchases you made.

Offline Ergel

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Re: Figuring Out the Math
« Reply #62 on: September 11, 2014, 07:07:40 PM »
2.14
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Offline ckmk47

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Re: Figuring Out the Math
« Reply #63 on: September 11, 2014, 09:21:59 PM »
I got the SP values from a DDMS post that I can't find right now;  I may not have read enough of that post to have used that value.  So I should revise it to reflect a straight
2.14
And I agree with
There are free/cheap ways to do MS for bonuses, therefore you should save specific purchases like MetroCard for the card that would benefit you the most. If you hit a bonus via MetroCard and then used an SP for AP, you would not have gotten the best value for the purchases you made.
But sometimes you're not going to do extra spending, so you need to calculate like I did.

Offline stbaum

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Re: Figuring Out the Math
« Reply #64 on: September 11, 2014, 09:54:40 PM »

If you're hitting a spending threshold when making a purchase, you're effectively getting more ppd (point per dollar) of spending.


So, for example, a metro card purchase of $100.
With the Sapphire Preferred you get 2 ppd on travel (so with the with 7% dividend): 3.75% 
-Sapphire Preferred without 7% dividend: 3.5%
If URs are worth 1.7 cpp (.017 cents per point)  you're earning 6.375 or 5.95 cents on the purchase.


If you're earning a bonus on another card though,  that purchase is in effect earning more than 1 ppd. 
For example the Delta card.  50,000 points for spending (IDK) $5000 (?).  Then
50,000 points    =      ??
$5000                     $ 1


or 10 points earned for each dollar of spending.
Even if each point is worth only .01  (1 cent) it's still more than what is earned with the SP.

Haha yasher koach! I'm still gonna use my sp for my metrocard. I'll just get to my spend threshold with gc...
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Offline cholent

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Re: Figuring Out the Math
« Reply #65 on: September 14, 2014, 02:37:58 AM »
I got the SP values from a DDMS post that I can't find right now;  I may not have read enough of that post to have used that value.  So I should revise it to reflect a straight And I agree with  But sometimes you're not going to do extra spending, so you need to calculate like I did.

I think in the post you're talking about Dan had already revised the 2.14 to a higher number to reflect the value of the points. You took his numbers and revised them up again.
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Offline @Yehuda

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Re: Figuring Out the Math
« Reply #66 on: September 19, 2014, 12:13:29 PM »
Does it make sense to use a Gap card at a Gap Inc. store? Forgetting ebates or buying GCs with a 5x card.

Let's do some math:
$1 spent at a Gap Inc store is 5 Gap points. 1000 points = $10 GAP voucher. So if you spend $200 at Gap, you'll have 1000 points which = $10 in rewards.
Which means each dollar you spend at a Gap store is worth 10/200= $0.05 in Gap rewards

Now, if you would use a Chase card, you would only get 1 point per dollar spent. And if you value UR somewhere between 1.45-1.6, you'd only be getting $0.0145-$0.016 per point. Meaning you'll make a an extra ~3.5 cents per dollar spent if you use the Gap card.

Does that math make sense?

Offline HowYaDoin

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Re: Figuring Out the Math
« Reply #67 on: September 19, 2014, 12:17:51 PM »
Does it make sense to use a Gap card at a Gap Inc. store? Forgetting ebates or buying GCs with a 5x card.

Let's do some math:
$1 spent at a Gap Inc store is 5 Gap points. 1000 points = $10 GAP voucher. So if you spend $200 at Gap, you'll have 1000 points which = $10 in rewards.
Which means each dollar you spend at a Gap store is worth 10/200= $0.05 in Gap rewards

Now, if you would use a Chase card, you would only get 1 point per dollar spent. And if you value UR somewhere between 1.45-1.6, you'd only be getting $0.0145-$0.016 per point. Meaning you'll make a an extra ~3.5 cents per dollar spent if you use the Gap card.

Does that math make sense?
math is good big difference is one is gap money while the other is cash

Offline @Yehuda

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Re: Figuring Out the Math
« Reply #68 on: September 19, 2014, 12:20:55 PM »
math is good big difference is one is gap money while the other is cash
Thanks. Yeah absolutely.

Offline ckmk47

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Re: Figuring Out the Math
« Reply #69 on: September 19, 2014, 12:23:18 PM »
math is good big difference is one is gap money while the other is cash
UR is not cash.  Gap money get you a shirt or whatever free.
Sounds like using a gap card wins if it's a store you'd buy more stuff in anyway.

Offline Redbull3

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Re: Figuring Out the Math
« Reply #70 on: October 23, 2014, 07:56:14 AM »
UR is not cash.  Gap money get you a shirt or whatever free.
Sounds like using a gap card wins if it's a store you'd buy more stuff in anyway.

-1 Ur is 1% cash or better with other methods of redeeming

Underrated option these days (especially for retail like gap) is buying a gift card from a site like cardpool- usually beats any cc. You will lose purchase protection related stuff but usually maximize cb.

Offline @Yehuda

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Re: Figuring Out the Math
« Reply #71 on: November 02, 2014, 09:21:01 AM »
Going NYC-TLV with UA miles is 85K RT with Saver availability. At 1.45 cpp, that's $1160. How is flying that route a good deal? That's barely cheaper than a full price ticket, and at some points in the year, it's actually more expensive than paying cash.

Offline lunatic

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Re: Figuring Out the Math
« Reply #72 on: November 02, 2014, 09:29:52 AM »
Going NYC-TLV with UA miles is 85K RT with Saver availability. At 1.45 cpp, that's $1160. How is flying that route a good deal? That's barely cheaper than a full price ticket, and at some points in the year, it's actually more expensive than paying cash.
That's economy in general.. On award flights

Offline TimT

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Re: Figuring Out the Math
« Reply #73 on: November 02, 2014, 09:35:06 AM »
That's economy in general.. On award flights
+1. Business & first is where you see the big difference.

Offline ChaimMoskowitz

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Re: Figuring Out the Math
« Reply #74 on: November 02, 2014, 09:52:11 AM »
Going NYC-TLV with UA miles is 85K RT with Saver availability. At 1.45 cpp, that's $1160. How is flying that route a good deal? That's barely cheaper than a full price ticket, and at some points in the year, it's actually more expensive than paying cash.
It is not a good deal. That is the problem with miles.
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