PTO Payout Calculator
Use the PTO Payout Calculator to estimate the gross pre-tax dollar value of your unused paid time off hours based on your hourly pay rate and available leave balance. Optionally enter your daily work hours to view equivalent workdays and daily pay value.
All inputs stay in your browser—your hourly pay rate and unused PTO balance are never transmitted to any server or stored in URL query strings.
Estimate Your Unused PTO Value
Enter your paid time off details below. Results and calculation breakdown update immediately.
Estimated Gross Payout (Pre-Tax)
$1,400.00
Unused PTO Hours
40 hours
Hourly Rate
$35.00/hr
Pre-tax gross estimate only. Does not guarantee payout eligibility or calculate after-tax take-home pay.
Calculation Breakdown
40 hours × $35.00/hr = $1,400.00 (Estimated Gross Payout)
How PTO Payout Is Calculated
- Enter your total Unused PTO Hours from your current leave balance.
- Input your gross Hourly Pay Rate in US dollars.
- Optionally enter your scheduled Daily Hours (such as 8 hours) to see workday equivalents.
- Click Calculate to view your Estimated Gross Payout (pre-tax) and calculation breakdown.
PTO Payout Examples
- Unused PTO Hours
- The number of accrued, unused paid time off hours eligible for valuation.
- Hourly Pay Rate ($/hour)
- Your base gross hourly wage (or annual salary divided by 2,080 standard work hours).
- Optional Daily Hours
- Used to display how many workdays your unused PTO represents and the gross value per workday.
Factors That Affect PTO Payout
Estimating Pre-Tax Gross Payout for 40 Unused PTO Hours
An employee has 40 hours of unused accrued PTO and earns a base hourly pay rate of $35.00 per hour on an 8-hour daily schedule.
- Unused PTO Hours = 40 hours
- Hourly Pay Rate = $35.00 / hour
- Estimated Gross Payout = 40 hours × $35.00 = $1,400.00 (Pre-Tax Gross)
- Workday Equivalent = 40 hours / 8 hours per day = 5 workdays ($280.00 per day)
The estimated gross pre-tax payout value of the 40 unused PTO hours is $1,400.00 before tax withholding.
Employer Policies and State Rules
This calculator provides a mathematical estimate of pre-tax gross monetary value only. It does not determine whether you are entitled to a payout, nor does it guarantee that an employer must pay out unused PTO when you resign, retire, or are terminated.
In the United States, federal law (the Fair Labor Standards Act) does not require employers to provide paid vacation or pay out unused PTO at separation. Instead, whether unused accrued vacation or PTO must be paid out depends on a combination of state and local laws, your employer’s written handbook policy, and any applicable employment contract or collective bargaining agreement. Furthermore, lump-sum PTO payouts are subject to federal, state, and payroll tax withholding (often taxed as supplemental wages), so your net take-home check will be lower than the gross estimate shown here.
For more background, read our guides on how to calculate unused PTO payout and what happens to unused PTO when you leave a job.
Assumptions & Limitations
- This calculator estimates gross pre-tax dollar amounts only and does not calculate net after-tax take-home pay.
- It does not determine whether you have a legal or contractual right to receive a PTO payout.
- It does not guarantee that your employer will pay out unused hours.
- Actual payout eligibility and rate calculations depend on employer policy, applicable state and local rules, employment agreements, and leave classification (e.g., vacation vs. sick leave).
Frequently Asked Questions
How much is one PTO hour worth?
Before taxes, one hour of accrued PTO is typically valued at your regular base hourly pay rate. If you are salaried on a standard 40-hour week, your hourly equivalent is your annual base salary divided by 2,080 hours.
Is unused PTO paid when you quit?
It depends on state law and your employer policy. Some states require accrued vacation/PTO to be paid out at separation, while other states defer to the employer’s written policy or require notice conditions to be met.
Is PTO payout taxed?
Yes. Unused PTO cash-outs are considered taxable wages by the IRS and are subject to federal income tax, Social Security, Medicare, and applicable state and local taxes. Employers often withhold federal tax on lump-sum payouts using supplemental wage rules.
Does every employer pay unused PTO?
No. Unless required by state law or an employment contract, employers may adopt policies that forfeit unused PTO upon termination or restrict payouts if an employee leaves without giving required notice.
How do I calculate PTO payout from an hourly rate?
Multiply your eligible unused PTO hours by your gross hourly pay rate: Estimated Gross Payout = Unused PTO Hours × Hourly Pay Rate.
Related PTO Tools & Resources
PTO Carryover Calculator
Calculate how many year-end PTO hours roll over vs. exceed your cap.
PTO Calculator
Verify your net remaining PTO hours before estimating payout value.
PTO Hours to Days Calculator
Convert your unused PTO hours into equivalent workdays.