Rachel, 31, is a marketing executive who earns $5,500 a month and takes home $4,400 after her CPF contribution. Over the past six months she put $6,800 of spending on a flat 1.5% cashback card and earned $102.00. A friend who collects miles told her a miles card would have paid more, so she set out to compare the two.
Cashback is paid in dollars, while miles take their value from what the cardholder later redeems them for. The two compare once a mile has a price in cents. A card's miles per dollar multiplied by the value of a mile gives an equivalent cashback rate.
At 1.2 miles per dollar, a miles card matches a 1.5% cashback card when each mile is worth 1.25 cents. At 1.8 cents a mile, the same card earns the equivalent of 2.16%. The sections below apply that sum to Rachel's six months of spending.
What Do Singapore Cards Pay In Miles And Cashback?
Of 76 Singapore credit cards whose published headline terms were checked on 28 August 2026, 40 pay cashback and 25 pay miles. The most common bonus rate stated without "up to" is 5% for cashback cards and 4 miles per dollar for miles cards. Fourteen stated rates on miles cards sit between 1.2 and 1.4 miles per dollar, and four cards pay 0.4 miles per dollar outside their bonus categories.
Rachel's spending is spread across groceries, transport and bills, so a bonus category would cover little of it. She compares her cashback card with a miles card paying 1.2 miles per dollar on everything.
How Is A Mile Converted Into A Cashback Rate?
The equivalent rate is miles per dollar × value of a mile in cents. A card paying 1.2 miles per dollar, with miles worth 1.8 cents, returns 1.2 × 1.8 = 2.16 cents per dollar, or 2.16%.
| Miles per dollar | At 1.2 cents a mile | At 1.8 cents a mile | At 2.5 cents a mile |
|---|---|---|---|
| 1.2 (Rachel) | 1.44% | 2.16% | 3.00% |
| 1.4 | 1.68% | 2.52% | 3.50% |
| 2 | 2.40% | 3.60% | 5.00% |
| 4 | 4.80% | 7.20% | 10.00% |
Source: Earn rates from published headline terms, checked 28 August 2026; mile values are assumptions
The break-even value is the cashback rate ÷ miles per dollar. Against her 1.5% cashback, the 1.2 miles-per-dollar card breaks even at 1.5 ÷ 1.2 = 1.25 cents a mile. The miles card pays her more only if she redeems each mile for more than that.
What Is A Mile Worth To Her?
A mile is worth the cash price of the redemption it pays for, divided by the miles it costs. Taxes and surcharges paid on an award ticket come off the cash price first.
A seat in a premium cabin that the cardholder would otherwise pay a high fare for usually gives more cents per mile than an economy seat on a short route. A mile redeemed for shopping vouchers usually gives less. Rachel flies once a year, in economy, to visit family in the region. The values of 1.2, 1.8 and 2.5 cents in the table are assumptions for comparison and are not published figures.
Read Also: Which Credit Card Pays The Most In Singapore?
How Would Her Six Months Compare?
On the miles card, her $6,800 would have earned $6,800 × 1.2 = 8,160 miles. The table puts a cash value on them at each assumed value of a mile.
| Value of a mile | Value of 8,160 miles | Compared with $102.00 cashback |
|---|---|---|
| 1.2 cents | $97.92 | $4.08 less |
| 1.8 cents | $146.88 | $44.88 more |
| 2.5 cents | $204.00 | $102.00 more |
Source: Worked example on illustrative card terms
The miles only pay once they are redeemed. Miles and bank points that expire before Rachel has enough for the redemption she wants are worth nothing.
What Else Changes The Comparison?
Three terms change the equivalent rate before the value of a mile is applied:
- Many miles cards earn bank points that are converted to airline miles in fixed blocks, and some banks charge a fee for each conversion.
- A 4 miles-per-dollar rate often applies only up to a monthly cap or in chosen categories, with a lower base rate outside them.
- The annual fee is paid in dollars, whatever unit the card pays.
Read Also: Two-Card And Three-Card Wallets: When A Second Credit Card Pays For Its Annual Fee
Which Card Did Rachel Keep?
Rachel kept her cashback card. Her yearly economy flight is the kind of redemption that gives a low value a mile, and at 1.2 cents her 8,160 miles would be worth $97.92 against the $102.00 she earned in cash. The miles card would pay more only if she redeemed above 1.25 cents a mile.
Miles suit cardholders who redeem for flights they would otherwise pay for, at a value well above the break-even figure, and who collect enough before the points expire. Cashback suits cardholders who fly rarely or would redeem for low-value rewards. The better card for each household depends on its spending and what it redeems for, and the cents per mile from the last redemption is the figure to compare.