In addition to the points needed there is a $95 exhange fee.You also have to pay your tips.
We used points for 3 of us, paid cash for the 4th person. Cash due at time of booking.
It is usually a better value to use your points for hotel rooms as a point value, but when we had points to use that would expire and there was a cruise leaving from our backyard that saved us airfare, the point value was better to do the cruise for us. (Alaska 2011). Then we got hooked.
To do a cruise out of PC or to do WDW requires the same airfare for us.
We figured out points needed for the time we could go in December, plus park passes and food to make it fair in comparing OOP costs.
We then compared that total to the points for cruise. (Points for 2, cash for the 3rd)
It was cheaper to cruise for us because of our family size/ages and the week we were going plus the fact that we would not be cooking in our unit on this trip.
To get the 1 bed unit at Christmas, the points were high/close to the cruise. To get the studio and pay for food was also close.
At another time of year, staying at WDW would be "cheaper" in points plus cash expenses.
That being said, if you just look at the cost for the room, staying at WDW is always the better value.