PTO Payout Calculator

If your employer pays out unused paid time off — when you leave a job, or under a use-it-or-lose-it policy your state doesn't allow — the value is simply your hourly rate times your unused hours. Enter both to see the gross payout before taxes.

Hourly rate ($) Unused PTO hours Hours per workday

Worked example

At $25/hr with 80 unused PTO hours: 80 × $25 = $2,000 gross payout — that's 10 full workdays at 8 hours a day, paid out before taxes and deductions.

Formula

Gross PTO payout = hourly rate × unused PTO hours. Salaried? Divide your annual salary by 2,080 (40 hrs × 52 weeks) to get your hourly rate first — try the Salary to Hourly Calculator.

FAQ

Does my employer have to pay out unused PTO? There is no federal rule. Some states (for example California, Colorado and Illinois) treat earned vacation as wages that must be paid out at separation; others leave it to the employer's written policy. Check your state labor department and your handbook.

Is a PTO payout taxed? Yes — it is withheld like regular wages, and some employers withhold at the 22% supplemental rate used for bonuses, which settles at tax filing.