When you shop online in Canada, you often face a choice that looks impossible to compare: a cashback portal offers, say, 4% back in cash, while the Aeroplan eStore offers 3 points per dollar at the same retailer. Is 4% better than 3 points? It depends entirely on what a point is worth to you. This guide teaches you the simple math to put points and cash on the same scale, so you stop guessing and start optimizing.

Why You Can't Compare Points and Cash at Face Value

A dollar of cashback is worth exactly one dollar. You can spend it on anything. A point or a mile, on the other hand, has no fixed value. Its worth changes depending on how you redeem it. The same Aeroplan point might be worth 1 cent when redeemed for merchandise and 2+ cents when redeemed for a well-chosen flight. That variability is why "3 points per dollar" and "4% cash" can't be compared until you assign points a value.

The tool that makes this possible is cents per point (CPP) valuation.

Cents Per Point (CPP): The Universal Translator

Cents per point is simply how many cents of value you get when you redeem one point. The formula is:

CPP = (Cash value you received from a redemption ÷ Number of points used) × 100

Example: You redeem 25,000 Aeroplan points for a flight that would otherwise cost $375. Your CPP is (375 ÷ 25,000) × 100 = 1.5 cents per point.

Once you have a CPP estimate for the program you use, you can convert any "points per dollar" earn rate into an effective cashback percentage.

The conversion formula

Effective % back = Points earned per $1 × CPP (in cents) ÷ 100 × 100

That simplifies to: Effective % = Points per $1 × CPP (in cents).

Worked Examples

Let's use realistic, conservative CPP assumptions. These are illustrative values, not guaranteed rates — your actual redemption value will vary.

Example 1: Aeroplan eStore at 3 points per dollar

Earn rate: 3 Aeroplan points per $1
Assumed value: 1.5 cents per point
Effective cashback = 3 × 1.5 = 4.5% effective

So at 1.5 CPP, a 3x Aeroplan offer beats a 4% cash offer. But if you only ever redeem your Aeroplan points for merchandise at roughly 1.0 cent each, that same offer is worth 3 × 1.0 = 3% effective — and the 4% cash wins.

Example 2: WestJet eStore at 2 points per dollar

Earn rate: 2 WestJet points per $1
WestJet dollars/points are pegged closer to 1 cent each in value for flight redemptions
Effective cashback = 2 × 1.0 = 2% effective

Here a straightforward 3% or 4% cash offer would clearly come out ahead.

Example 3: A high cash rate vs. a modest points rate

A store shows 6% cash on one portal and 2 Aeroplan points per dollar on the eStore. Even at a generous 2.0 CPP, the points are worth 2 × 2.0 = 4% effective. The 6% cash wins comfortably. The lesson: a high headline cash rate frequently beats a modest points multiplier.

When Points Beat Cash

Despite the math often favouring cash, there are real situations where points are the smarter earn:

You're saving for a specific premium redemption. If you redeem Aeroplan points for business-class flights where you routinely extract 2+ cents per point, your effective rate on earning can be excellent.
Transfer and elite perks. Points can ladder into status, companion benefits, or transfer partners that have no cash equivalent.
The points offer is dramatically higher. During bonus events, an eStore might run 10x or 15x points. At even 1.2 CPP, 10x = 12% effective — far beyond most cash rates.
You value the "forced savings" of a travel goal and would otherwise spend the cash.

When Cash Beats Points

Cash is usually the rational choice when:

You redeem points for low value (merchandise, gift cards near 1 cent or less).
You don't fly often or your travel plans are uncertain — points can devalue or expire.
The cash rate is comparable or higher once converted. A 4% cash rate beats 2x points at almost any reasonable CPP.
You want flexibility. Cash has no blackout dates, no award availability problem, and no devaluation risk.

A Quick Reference: Points-per-$1 to Effective %

Multiply the earn rate by your assumed CPP. At a moderate 1.5 cents per point:

1x = 1.5% effective
2x = 3.0% effective
3x = 4.5% effective
5x = 7.5% effective
10x = 15% effective

At a conservative 1.0 cent per point, just read the earn multiplier as the percentage (3x ≈ 3%).

How Canada Cashback Monitor Shows Both Natively

The hard part of this comparison is usually gathering the numbers. On Canada Cashback Monitor you can search any store and see cash portals (like Rakuten and Great Canadian Rebates) alongside points portals like the Aeroplan eStore and Blue Rewards on one screen. You see the live cash percentage and the points-per-dollar earn rate next to each other, so you can apply your own CPP and pick the winner for each purchase.

For a deeper head-to-head on the major portals, read our cornerstone comparison, Aeroplan eStore vs Rakuten vs GCR: Which Pays More?. And remember you don't always have to choose — see How Cashback Stacking Works in Canada to combine a portal, your credit card rewards, and a promo on the same order.

Frequently Asked Questions

What CPP should I use for Aeroplan?

Many Canadians value Aeroplan points between roughly 1.3 and 2.0 cents each, depending on how they redeem. Use a conservative number you can actually achieve, not a best-case figure.

Are WestJet points worth a fixed amount?

WestJet's points generally redeem closer to about 1 cent each toward flights, which makes the conversion math simple — but always confirm against a real booking.

Should I always pick the higher effective percentage?

Usually, yes, but factor in flexibility and devaluation risk. Cash never devalues; points can. If two options are close, lean toward cash unless you have a concrete travel goal.

Where can I see live rates to run these numbers?

Search any retailer on Canada Cashback Monitor to compare current cash and points rates side by side, then apply the CPP math above.

The Bottom Line

To compare cashback and points fairly, translate everything into an effective percentage using cents per point. Points win when you redeem them at high value or catch a big bonus multiplier; cash wins when rates are comparable or when you want flexibility. Run the numbers on every meaningful purchase — and use Canada Cashback Monitor to see cash and points rates together before you check out.

Cashback vs Points: Compare Aeroplan & WestJet to a % Rebate