Reward Points Value Calculator
Product rewards cost you cost, not retail.
Value of one point
$0.0050
3.6% of revenue after breakage
Points redeemed for your own products cost you the cost of goods, not the retail value — $5.60 rather than $10.00. That is why product rewards are cheaper than cash-equivalent ones at the same perceived value.
How the Reward Points Value Calculator works
Points redeemed for your own products cost you the cost of goods, not the retail value. That is why product rewards are considerably cheaper than cash-equivalent ones at the same perceived value — and why the choice of reward matters more than the earn rate.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I value a loyalty point?
Reward value divided by points required. That gives the redemption value; multiplying by the earn rate gives the programme's cost as a percentage of revenue.
What is breakage?
Points issued that are never redeemed. It reduces the real cost of the programme substantially, though it also means members are not getting value, which eventually shows up in engagement.
What earn rate is normal?
Most retail programmes land between 1% and 5% of spend in redemption value. Above 5% the programme starts competing with your margin rather than supporting it.
Should rewards be products or discounts?
Products, where possible — they cost you cost of goods rather than face value and they bring the customer back into the store. Cash-equivalent discounts cost full value and do neither.