PTO Payout Calculator (Unused Vacation Pay)
Calculate the payout for unused vacation or paid time off when you leave a job: daily and hourly rate from your salary, payout before and after tax, in days or hours of leave.
How it works
daily rate = annual salary ÷ paid workdays · hourly rate = daily rate ÷ hours per day · days of leave = hours ÷ hours per day · payout = days × daily rate · after tax = payout × (1 − withholding)
Many employers pay out accrued but unused vacation or PTO when you leave, and some laws require it: several US states (for example California) treat earned vacation as wages that must be paid at separation, and in the EU and UK statutory annual leave not taken by the end of employment must be paid in lieu. The payout is normally your regular rate times the unused balance, and it is taxed like wages — often withheld at the supplemental rate. Whether you are owed a payout depends on your contract and local law.
Worked example
With 10 unused days on a $52,000 salary and 260 paid workdays, your daily rate is $200.00 (an hourly rate of $25.00 for 8-hour days). The payout before tax is $2,000.00; with 22% withheld ($440.00) you receive $1,560.00 after tax. The balance equals 80.0 hours of leave.
Sources: US Department of Labor — Vacation leave · GOV.UK — Holiday entitlement
Frequently asked questions
How is a PTO payout calculated?
Multiply your unused hours by your hourly rate, or unused days by your daily rate. On a $52,000 salary with 260 workdays, each day is worth $200.
Is my employer required to pay out unused vacation?
It depends on where you work. Some US states require it, others leave it to company policy; in the UK and EU, untaken statutory leave must be paid when employment ends.
How is a PTO payout taxed?
As ordinary wages. In the US it is often treated as supplemental wages with 22% federal withholding, plus social security, Medicare and state tax; the final tax depends on your annual income.
Should I take my leave or get it paid out?
Financially a payout is your normal pay for those days, so it is roughly equal — but rest has value, and some employers cap or forfeit unused leave, so check the policy before the year ends.
Related calculators
Planning estimate only — not legal, tax or payroll advice. Employment contracts, labour law and tax rules differ by country and employer; check your contract, your payslip or a qualified adviser.