Many seem to value a skymile at 2 cents. However, it depends on what you purchase using the miles. For example if you buy a skysaver fare than it cost should be 25,000X.02= $500 or $1000 for a skychoise award.

Taken another way it cost $300 or 50,000 skymiles for a GM to join the Crown Room Club. That computes to 300/50000= .6 cents per skymile.

You are spending 125/10000=1.25 cents to convert a skymile. That means it cost you 25000X.0125=$312.50 for a skysaver trip. If the fare is more than $312.50 you might consider this a profit to you except that your flight selection is very limited, and you do not earn miles for this trip.

If this $312.50 trip would earn 2000 miles then at the going rate of .0275 to purchase a mile not including tax these 2000 miles are worth.2000x.0275=$55. So your skysaver should cost. $312.50+55= $367.50.

Usually the value of a skymiles is less than 0.2.