PTO Payout Calculator — Unused Vacation Pay
Need to calculate how many PTO hours you have earned? Use the PTO Accrual Calculator. This page values unused hours in dollars; the accrual tool estimates the hours themselves.
Estimate the value of unused vacation or PTO that is payable when employment ends. Payout eligibility depends on the type of leave, state law, and the employer policy that applies to you.
Formula: Payable unused hours × applicable hourly rate × payout percentage. Example: 40 payable hours × $25/hr × 100% = $1,000 estimated payout. Whether a balance must be paid depends on the type of leave, state law, and the employer policy; see the verified examples below.
Estimated unused vacation pay: —
PTO payout part of your final check? Use the Final Paycheck Calculator. Missing wages beyond PTO? See the Back Pay Calculator.
How to Calculate a PTO Payout or Unused Vacation Pay
The basic value calculation is payable unused hours × applicable hourly rate × payout percentage. This calculator defaults to 100% because some jurisdictions require earned vacation to be paid in full at separation.
Example: 40 payable vacation hours × $25/hour × 100% = $1,000.
Do not use a reduced payout percentage merely because an employer prefers to pay less. Whether a lower percentage is lawful depends on the governing state law, the type of leave, and the policy in effect when the time was earned.
If you are salaried, use the pay rate your employer or applicable law uses for vacation payout. A simple salary ÷ 2,080 conversion can be a rough estimate, but it is not the required method in every jurisdiction or pay arrangement.
State PTO Payout Laws: Verified Examples
The Fair Labor Standards Act does not require employers to provide paid vacation, and federal law does not create a general unused-vacation payout rule. State law and employer policy therefore matter. The examples below are limited to rules verified from official state sources and are not an exhaustive 50-state chart.
| Jurisdiction | General rule | Official source |
|---|---|---|
| Federal (FLSA) | No federal requirement to provide paid vacation. | U.S. DOL |
| California | Earned vacation accrues as wages and cannot be forfeited; earned unused vacation must be paid when employment ends. If qualifying final vacation wages are paid late, a separate California waiting-time penalty may apply. | California DIR |
| Colorado | Earned and determinable vacation pay is payable on separation and cannot be forfeited by policy. | Colorado CDLE |
| Illinois | Earned vacation under the employer's contract or policy must be paid at separation. | Illinois DOL |
PTO banks can combine vacation, sick leave, and other leave. The payout rule may differ depending on how the plan is structured. Verify your state labor agency and the written policy before treating the calculator result as an amount legally owed.
"Use It or Lose It" PTO Policies: What to Check
Whether an employer can forfeit unused leave depends on the jurisdiction and the type of leave. For earned vacation, California does not permit forfeiture of accrued vacation, and Colorado likewise protects earned and determinable vacation pay at separation.
- California: earned vacation cannot be forfeited, although a reasonable cap can limit future accrual.
- Colorado: earned and determinable vacation pay cannot be forfeited on separation.
- Other states: policy language can matter substantially; do not assume the California/Colorado rule applies nationwide.
- Sick leave vs vacation/PTO: payout rules can differ, especially where a PTO bank combines several kinds of leave.
If an employer removed an earned balance, save the policy version, pay stubs, leave statements, and termination paperwork showing the balance.
Related Wage Calculators
- Calculate final paycheck wages after termination
- Estimate unpaid wages from missing hours
- Estimate severance pay owed after termination
- PTO Accrual Calculator — estimate PTO earned per pay period and your available balance
Frequently Asked Questions
What is a PTO payout calculator?
A PTO payout calculator estimates the dollar value of unused vacation or PTO that is payable. Enter payable unused hours, the applicable hourly rate, and a payout percentage if a lawful policy or rule uses less than 100%.
How do I calculate accrued vacation payout?
Multiply payable unused vacation hours by the applicable hourly rate. For a full payout, use 100%. For example, 40 hours × $25/hour = $1,000.
Is unused vacation pay required when I leave a job?
It depends on state law and the employer policy. Federal law does not create a general vacation benefit or payout requirement. California, Colorado, and Illinois are examples of states with protections for earned vacation at separation, but their rules are not identical.
Can an employer use a "use it or lose it" vacation policy?
That depends on the state and the type of leave. California does not allow forfeiture of earned vacation, and Colorado protects earned and determinable vacation pay. Other states can rely more heavily on written policy.
Is PTO the same as vacation pay?
Not always. A PTO bank may combine vacation, sick leave, and other paid time. Payout rules can depend on how the plan is defined, so a rule for vacation does not automatically apply to every PTO balance.
Is unused vacation pay taxable?
Generally yes when it is paid as compensation. The IRS states that payments for accumulated vacation or sick time are taxable. See IRS job-loss tax guidance.
Not sure which calculator fits your situation? See all wage and pay calculators.