Every Canadian bank advertises points, but none of them advertise what a point is worth. "5x points on groceries" sounds like 5% back — it usually isn't. This guide shows you how to translate any points card into a plain percentage so you can compare it against a simple cashback card.
The only formula you need
Earn rate × point value = real return.
A card that earns 5 points per dollar, where each point is worth 1 cent, returns 5%. A card that earns 5 points per dollar where points are worth 0.7 cents returns 3.5%. Same "5x" marketing, very different outcome.
Point values in Canada cluster around these ranges:
| Program | Typical value per point | Best redemption |
|---|---|---|
| Aeroplan | 1.5–2.1¢ | Flight rewards |
| Amex Membership Rewards | 1.0–2.0¢ | Transfers to Aeroplan/Avios |
| Scene+ | 1.0¢ | Travel or groceries |
| RBC Avion | 1.0–1.6¢ | Airline transfer partners |
| BMO Rewards | 0.67¢ | Travel bookings |
| TD Rewards | 0.5¢ | Expedia for TD |
Why redemption choice matters more than earn rate
The same Aeroplan point is worth about 2 cents on a well-chosen flight reward and about 0.8 cents on a gift card. Redeeming 60,000 points for a $480 gift card instead of a $1,200 flight quietly throws away $720. The rule: points programs reward people who redeem for the thing the program is built around — usually flights — and punish everyone else.
If you know you'll never redeem for travel, stop chasing travel points. A flat 2% cashback card beats a points card you redeem badly, every single time.
Cashback vs points, honestly
- Cashback is worth face value, always. No blackout dates, no devaluations, no math.
- Points can beat cashback by 50–100% — but only with deliberate redemptions, and programs devalue over time.
A good test: if you spent 20 minutes last year optimizing a redemption and enjoyed it, you're a points person. If that sounds like a chore, take the cash.
How ClearFin handles this
Our calculator converts every points card to an estimated dollar return using conservative point values, so a "5x" card and a "4%" card are compared on the same scale. Try it with your own spending — the ranking usually surprises people.