How the PTO payout calculator works
Enter your balance in hours or days and how you are paid. If your employer pays only part of a balance or limits how many hours it pays, enter that too. The calculator never assumes a payout is owed; it values the balance under the policy you describe. For how balances build up, use the PTO accrual calculator, and read how PTO payout works for the rules.
PTO payout formula
Worked examples
Hourly: 40 hours at $20.00
- 40 × $20.00 = $800.00 before taxes.
Salaried: $62,000, 96 hours unused, policy pays up to 80 hours
- Hourly rate: $62,000 ÷ 2,080 = $29.81.
- Hours paid: 80 of 96; 16 hours are not paid under the cap.
- Payout: 80 × $29.81 = $2,384.62.
PTO payout table
| Hourly rate | 8 hours | 40 hours | 80 hours | 120 hours |
|---|---|---|---|---|
| $15.00 | $120.00 | $600.00 | $1,200.00 | $1,800.00 |
| $20.00 | $160.00 | $800.00 | $1,600.00 | $2,400.00 |
| $25.00 | $200.00 | $1,000.00 | $2,000.00 | $3,000.00 |
| $30.00 | $240.00 | $1,200.00 | $2,400.00 | $3,600.00 |
| $40.00 | $320.00 | $1,600.00 | $3,200.00 | $4,800.00 |
When PTO is paid out
The federal Fair Labor Standards Act does not require payment for time not worked, including unused vacation. Payout rules come from state law and employer policy, and they differ widely. Some states treat earned vacation as wages that must be paid when employment ends. California's Labor Commissioner, for example, states that earned, unused vacation must be paid when employment ends. Other states allow written policies that limit or forfeit payouts.
Frequently asked questions
How is PTO payout calculated?
Multiply the unused hours you are paid for by your hourly rate. 40 hours at $20.00 is $800 before taxes. Salaried employees can convert their salary to an hourly rate first.
Is my employer required to pay out unused PTO?
Federal law does not require it. Some states require employers to pay out earned vacation at the end of employment, while others allow written policies that forfeit it. Your state labor department and your employer’s written policy decide.
Is PTO payout taxed?
Yes. A PTO payout is paid as wages, so taxes and other deductions apply. This calculator shows the gross amount.
Does sick leave get paid out too?
It depends on the policy and state. Some employers combine vacation and sick time into one PTO bank, which can affect how payout rules apply. Check how your balance is labeled.
How do I find my hourly rate on a salary?
Divide your annual salary by your weekly hours times 52. $62,000 at 40 hours a week is $62,000 ÷ 2,080 = $29.81 an hour.
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How this calculator was built. The formula, defaults, and edge cases are documented in a research record and covered by automated tests. It estimates gross amounts from your inputs; it does not determine legal entitlements, taxes, or take-home pay. Read our methodology and disclaimer.
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