PTO Payout Calculator

Enter the pay rate and the unused time — in hours or days — and get the gross payout an employee walks away with.

Free — no signup Runs in your browser Pairs with the Employment Contract
Worked example

72 unused hours on a $58,240 salary, cashed out

Example: $58,240 salary · 72 unused PTO hours

For salaried employees, the payout rate is the salary converted to an hourly equivalent over the standard 2,080-hour year:

Hourly equivalent = $58,240 ÷ 2,080 = $28.00/hour
Payout            = 72 × $28.00 = $2,016.00  (gross)

That’s the gross amount — PTO payouts are wages, so normal payroll taxes come out, and many employers withhold federal income tax at the flat supplemental-wage rate. Whether the payout is owed at all depends on state law and the written PTO policy, which is exactly why the policy belongs in the employment paperwork.

FAQ

PTO payout questions

It depends on the state. Some states (California among them) treat accrued vacation as earned wages that must be paid at separation and ban use-it-or-lose-it policies. Many others enforce whatever the written policy says — including forfeiture. A clear written policy decides most disputes before they start.
The standard method is annual salary ÷ 2,080 (the 40-hour, 52-week year), which this calculator uses. Some policies divide by actual scheduled hours instead; if your policy specifies a method, follow it — the differences are small but real.
It’s the same wages for tax purposes, but employers often withhold federal income tax at the flat supplemental-wage rate (22% for most amounts) rather than your W-4 rate, so the check can look lighter than expected. The actual tax owed settles out on your return.
Generally no — unlimited policies have no accrued balance to cash out, which is one reason employers adopt them. A handful of legal disputes have tested this, but the mainstream result is: no accrual, no payout. If payout matters to you, an accrual policy is the structure that protects it.

This calculator provides general estimates for planning purposes and is not legal, tax, or financial advice. PTO payout obligations vary significantly by state and by written policy.

The payout is calculated.
The policy should be, too.

BizDocs writes employment contracts with the PTO accrual, carryover, and payout terms spelled out — the paperwork that settles this question in advance.

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