Cost per Mile Calculator

Overview

A robust understanding of the cost associated with air redemptions is critical for any airline loyalty program. Not only does it ensure that miles sold to external partners are priced at the appropriate level, it can also help to the internal optimization at the airline. But other than non-air redemptions (whose costs are straightforward), flight redemptions offer a different cost profile, which typically is a combination of multiple components. The On Point Loyalty Cost per Mile Calculator is a simple tool to project the cost associated with air redemptions. The comprehensive version of the Cost per Mile Calculator is part of the On Point Loyalty Suite of Financial Planning and Analysis Tools. Please contact us for more information here.

How to use the Cost Per Mile calculator

Complete the required information in the calculator below.
Once the minimum amount of information is provided, the calculator will automatically provide the Cost per Mile redeemed.

Economy Class

Business Class
How many flights were redeemed?*
Economy Class
How many flights were redeemed in business class?*
Business Class
What is the average number of miles redeemed for a flight?*
Economy Class
What is the average number of miles redeemed for a business class flight?*
Business Class
What is the percentage of flights with a load factor greater than 85%?*
Economy Class
What is the percentage of flights with a load factor greater then 85% in business class?*
Business Class
What is the average fare per flight?*
Economy Class
What is the average fare per flight in business class?*
Business Class
What are the marginal costs for one passenger?*
Economy Class
What are the marginal costs for one business class passenger?*
Business Class
What percentage of award passengers would have bought a ticket, assuming they could not use miles?
What is the airline's overall fair market share?
- - Cost Per Mile
  - Weighted Cost per Mile (overall)
  - Economy class redemptions
  - Business class redemptions
- - Overview of the costs
  - Total Costs
  - Total costs resulting from displacement
  - Total costs resulting from dilution
  - Total marginal costs

Explore the full suite of On Point Loyalty Tools

This Cost per Mile Calculator is only designed to provide a simple snapshot. With our full suite of financial planning and analysis tools, you will have the right solution to plan, track and optimize your program’s financial performance. The full suite not only includes a flexibly configurable Cost per Mile model, but also offers a comprehensive dashboard with a performance tracking functionality. In addition, the full suite offers a range of tools that will help you steer the performance of your program, including a FFP P&L module and a partner optimization model.

Find out more about our Financial Planning and Analysis tools for loyalty programs here.