Key takeaways
- Reward rate = (points per ₹ spent) × (₹ value per point) × 100.
- The same point can be worth 4× more or less depending on how you redeem it.
- Always compare cards using the value you will actually redeem at, not the best theoretical value.
- Points that expire unused are worth ₹0. Track them.
Banks advertise rewards in the way that sounds biggest: "10X points", "5 points per ₹150", "up to 3.3% value back". None of these numbers can be compared directly. To choose between cards, or to decide whether a redemption is worth it, you need to convert everything into one number: rupees back per ₹100 spent.
The formula
Every points programme can be reduced to two figures:
- Earn rate: how many points you get for each rupee spent. For example, 5 points per ₹200 is 0.025 points per rupee.
- Point value: how many rupees one point is worth when you redeem it. This depends on the redemption option you choose.
Reward rate (%) = points per rupee × value per point × 100
So 5 points per ₹200, redeemed at ₹0.50 per point, gives 0.025 × 0.50 × 100 = 1.25%. That's exactly how we value HDFC Bank Regalia Gold after its 2026 earn-rate change.
Worked examples with real cards
| Card | Earn rate | Value per point | Reward rate |
|---|---|---|---|
| HDFC Bank Regalia Gold | 5 points / ₹200 | ₹0.50 (flights and hotels via SmartBuy) | 1.25% |
| HDFC Bank Millennia | 5% or 1% as points | ₹1 against the statement | 5% / 1% |
| SBI Card SimplyCLICK | 10X on partners (10 points / ₹100) | ₹0.25 | 2.5% |
| IDFC FIRST Millennia | 3X base on a ₹200 basis | ₹0.25 | 0.375% |
| Axis Bank Atlas | 2 EDGE Miles / ₹100 | Depends on the airline redemption (see below) | Varies |
Rates as recorded in our card database, which cites each issuer's terms. Use the reward points value calculator for your own card.
Why the same point has different values
Most programmes let you redeem the same point in several ways, at very different rates. For HDFC Millennia, HDFC's own FAQ (February 2026) lists 1 point = ₹1 against the statement, 1 point = ₹1 for flights and hotels, and up to ₹0.30 on the rewards catalogue. The same 1,000 points can be worth ₹1,000 or ₹300.
The pattern is similar across banks:
- Statement credit or cashback: simple, but often the lowest value on premium cards.
- Product catalogues and vouchers: usually mid to low value, and prices are often inflated.
- Flights and hotels through the bank's travel portal: often the best fixed value.
- Transfers to airline or hotel programmes: variable, and sometimes the highest value. See our transfer partners guide.
How to value airline miles
Miles don't have a fixed rupee value. To value a specific redemption:
- Find the cash price of the exact flight (including taxes you'd pay anyway).
- Find the miles plus taxes and fees needed for the award ticket.
- Value per mile = (cash price − award taxes) ÷ miles needed.
For example, if a flight costs ₹30,000 in cash, or 20,000 miles plus ₹3,000 in taxes, each mile is worth (30,000 − 3,000) ÷ 20,000 = ₹1.35. If you'd never have paid ₹30,000 for that flight, the real value to you is lower. Be honest with yourself here.
Four mistakes that inflate point values
- Using the best-case redemption for every point. Most people redeem across several options. Use a realistic average.
- Ignoring caps. "10X" usually has a monthly ceiling. SBI SimplyCLICK's 5X online points, for example, are capped at 10,000 points a month.
- Ignoring exclusions. Fuel, rent, wallet loads, EMIs and government payments often earn nothing.
- Forgetting redemption fees and expiry. Some banks charge a fee per redemption, and unused points expire. HDFC's Millennia FAQ says unredeemed points lapse within 2 years.
Putting it together: comparing two cards
Say Card A gives 4 points per ₹100 at ₹0.25 (1%) and Card B gives 2% flat cashback. Card A only wins if you consistently redeem its points at more than ₹0.50 each, for example through airline transfers you'd actually use. For most people, the simpler 2% card pays more. Our credit card finder does this comparison across all cards using your own spending.
A quick checklist before you redeem
- List every redemption option your bank offers for these points: statement credit, vouchers, catalogue, travel portal and transfers.
- Convert each to rupees per point using the price of something you'd genuinely buy.
- Subtract redemption fees. Some banks charge a flat fee per redemption, which hurts small redemptions most.
- Check caps. HDFC, for example, caps monthly cashback redemptions on Millennia at 3,000 points and flight or hotel redemptions at 50,000 points, and lets you pay only part of a booking with points.
- Redeem before changes. If a bank announces a devaluation, the old rate usually applies until the effective date. Our changes log tracks these.
What "value back" means on our site
Every reward rate on CardPicker is an effective value back: the rupee value per ₹100 spent, using the redemption most people can realistically use for that card. For cashback cards that's the cashback itself. For points cards we use the common travel or statement value and state it on each card page. That's how our finder can compare a cashback card with a points card fairly.
Real rate vs headline rate: an example
A card advertising "10X rewards" earns 10 points per ₹100 on partner merchants. With points worth ₹0.25, that's 2.5% on those merchants, which is good. But the card earns 1X (0.25%) on offline spends. If only a third of your spending is with partners, your blended rate is about (⅓ × 2.5%) + (⅔ × 0.25%) ≈ 1%, much less than "10X" suggests. Always blend by your own spending mix.
FAQs
What is a good reward rate for a credit card in India?
Around 1–1.5% on all spends is typical for entry and mid-range cards. 2–5% is strong in bonus categories, and premium cards can return about 3.3% on regular spends.
Are 10X reward points always good?
Not necessarily. 10X on a base rate of 1 point per ₹100 worth ₹0.25 is 2.5%, which is good, but only within the monthly cap and on the listed partners.
Should I redeem points for cashback or vouchers?
Choose whichever gives the highest value per point for something you would buy anyway. Check the rupee value of each option before redeeming.
Sources
- HDFC Bank: Millennia Credit Card FAQ (6 Feb 2026)
- CardExpress: 2026 credit card changelog (Regalia Gold earn rate)
- Paisabazaar: SBI SimplyCLICK card terms
