1. What is Points Per Dollar (PPD)?

Points Per Dollar (PPD) is a metric that measures the efficiency of reward programs by calculating how many points you earn for each dollar spent. It helps compare the value of different loyalty programs and spending strategies.

2. How Does the Calculator Work?

The calculator uses the PPD formula:

Where:

• Points Earned — Total points received from a purchase
• Dollars Spent — Total amount spent in dollars

Explanation: This simple ratio shows how many points you earn for each dollar spent, helping you evaluate the return on your spending.

3. Importance of PPD Calculation

Details: Calculating PPD helps maximize rewards from credit cards, loyalty programs, and promotional offers. It allows you to identify which spending methods yield the highest returns.

4. Using the Calculator

Tips: Enter the total points earned and the total dollars spent. Both values must be positive numbers, with dollars spent greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is a good PPD value?
A: A good PPD varies by program, but generally values above 1.0 are considered good, with premium cards often offering 2-5 PPD on certain categories.

Q2: Does PPD include sign-up bonuses?
A: For accurate ongoing comparison, it's best to calculate PPD without one-time sign-up bonuses, unless specifically evaluating a complete offer.

Q3: How does PPD differ from cents per point?
A: PPD measures earning rate, while cents per point measures redemption value. Both are important for evaluating reward program effectiveness.

Q4: Should I include taxes and fees in dollars spent?
A: For accurate PPD calculation, include all amounts actually charged to your payment method, including taxes and fees.

Q5: Can PPD help me choose between credit cards?
A: Yes, comparing PPD across different cards for your spending patterns can help identify which card offers the best rewards for your purchases.