PTO Accrual and Payout Calculator

How PTO accrual and payout work

Most employers grant a set amount of paid time off per year and let it build up gradually, either each pay period or for every hour worked. The dollar value matters most at the end, because unused time often has to be paid out when someone leaves.

Accrual rate

Per pay period accrual is the annual PTO hours divided by the number of paychecks in a year. Per hour worked accrual is the annual PTO hours divided by the hours a full-time employee works in a year, about 2,080 at 40 hours a week.

Payout value

The payout is the unused balance in hours times the hourly pay rate. For a salaried employee, the hourly rate is the annual salary divided by 2,080.

Do I have to pay out unused PTO?

It depends on your policy and your state. Some states require payout of accrued, unused PTO at termination, others leave it to your written policy. Check your state's rule and your handbook.

How many PTO hours is a normal year?

Two to three weeks is common, which is 80 to 120 hours at a 40 hour week. Your policy and tenure tiers set the actual number.

Are these numbers exact?

They are planning estimates based on a standard full-time year. Accrual caps, carryover limits, and waiting periods in your policy can change the real figures.