🏖️ PTO Payout Calculator

Enter your accrued but unused PTO hours and annual salary to estimate your payout amount, based on a standard 2,080-hour work year.

Accrued PTO Hours

Annual Salary

How the payout is worked out

Your salary is converted to an hourly rate on a fixed 2,080-hour year, then the accrued hours are multiplied by it:

hourly rate = annual salary ÷ 2,080
payout      = accrued PTO hours × hourly rate
days shown  = accrued PTO hours ÷ 8

On the default figures, $62,400 ÷ 2,080 is exactly $30.00 an hour, so 40 accrued hours - five eight-hour days - come to $1,200.00 before any deductions.

What the 2,080 does and does not assume

2,080 is 40 hours × 52 weeks. It counts every week of the year as paid, holidays and vacation included, so it is the standard full-time divisor rather than a tally of hours you were at your desk. No unpaid time off is subtracted.
A shorter week makes it conservative. On a 37.5-hour contract the honest divisor is 1,950, which on $62,400 is $32.00 an hour. The divisor here is fixed, so scale the result yourself if your week is not 40 hours.
The day count is fixed at eight hours. Balances quoted in days need converting first: six 7.5-hour days is 45 hours, not 48.

This estimates a gross amount. Whether unused leave is paid out at all, at what rate, and up to what cap depends on where you work and on your employer's own policy - read the handbook and check your local rules rather than treating this figure as an entitlement.

Frequently asked questions

How much is 40 hours of PTO worth?

It depends entirely on the salary behind it. At $62,400 a year the rate is $30 an hour, so 40 hours is $1,200 gross; at $104,000 the same 40 hours is $2,000.

Is a PTO payout taxed?

It is paid as wages, so yes. A lump sum is often withheld at a different rate from your normal paycheque, which can make it look heavily taxed until the year is reconciled. The figure above is gross, with nothing withheld.

Why does the calculator divide by 2,080 hours?

Because 40 hours a week for 52 weeks is the conventional full-time year used to turn a salary into an hourly rate. Part-time schedules and 37.5-hour weeks need a smaller divisor, which raises the hourly rate and the payout with it.