Miles or points? At ¥3M a year, a JAL or ANA card earning 1 mile per ¥100 beats a free 1.2% card if a mile is worth more than about ¥1.4

A free 1.2% card's points are worth ¥1 each. Whether a card that earns 1 mile per ¥100 (JAL with Premium, ANA with the 2x course — ¥7,150 and ¥8,800 a year in total fees) beats it depends on what a mile is worth to you. At ¥3M of yearly card spend, the JAL card wins if you can use a mile for more than about ¥1.44; at ¥1M it is ¥1.92, and at ¥10M ¥1.27.

How the break-even works

A miles card's net value is yearly miles times the value of a mile, minus the annual fee. A points card's is 1.2% of yearly spend. They are equal at the break-even mile value: (the points card's value + the miles card's fee) ÷ yearly miles. If you can use a mile for more than that, the miles card wins.

Break-even mile value by yearly card spend

For everyday spending on one card, the value of a mile (in yen) at which it matches the free 1.2% Recruit Card:

• ANA JCB CARD FIRST has no annual fee for five years, so it matches 1.2% at ¥1.2 a mile whatever you spend: 1 mile per ¥100 at ¥1.2 equals 1.2%. If you are 29 or under and can use a mile for more than ¥1.2, it wins outright.
• JAL (Premium) and ANA (2x course) need about ¥1.9–2.1 a mile at ¥1M a year, about ¥1.4–1.5 at ¥3M, and about ¥1.3 at ¥10M.
• The ANA VISA Platinum Premium earns 1.5 miles per ¥100 but costs ¥96,800, so it needs about ¥2.95 a mile at ¥3M a year and still about ¥1.45 at ¥10M. It is for people who will use the elite-status perks (flight bonus and so on).

The Luxury Card: miles or cashback?

The Luxury Card lets you take points as ¥1-a-point cashback or as miles at 0.6 miles per point. Miles are better if you can use a mile for more than 1 ÷ 0.6, about ¥1.67 — the same in Titanium, Black and Gold. Counting the annual fee, though, even miles only match a free card if a mile is worth more still. See the Luxury Card fee guide.

Deciding what a mile is worth

What a mile is worth varies with the route, season, class and whether you exchange for something else. Take a few award tickets you would really book, find the normal fare for the same route and date, subtract the taxes and surcharges you still pay on an award ticket, divide by the miles needed, and average them. This guide and the miles card calculator do not set a value for you.

The calculation leaves out card-funded investing points on miles cards (those points are limited to eligible cards and point types), and miles cards have other limits: you cannot spend the points like cash, and miles can expire. If unsure, set a mile at ¥1.5 and test the combination calculator. The verdict list is in Credit card verdicts.