PTO Payout Calculator

Leaving a job? Enter your pay and unused vacation hours to see what your PTO payout should be, before taxes.

Estimated PTO payout (gross)
—
Effective hourly rate—
Unused hours—
After ~22% supplemental withholding—

Estimate only. Actual payout depends on state law and company policy.

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How PTO payout is calculated

hourly rate = annual salary ÷ 2,080
payout = hourly rate × unused PTO hours

The 2,080 figure is the standard full-time year: 40 hours × 52 weeks. If your company defines a different standard workweek (37.5 hours is common), your HR team will divide by that year's hours instead — ask, because it changes the rate.

A worked example

You earn $62,400 and leave with 80 unused hours. Your hourly rate is $62,400 ÷ 2,080 = $30, so your payout is $30 × 80 = $2,400 gross. With the typical 22% federal supplemental withholding plus payroll taxes, expect roughly $1,700–1,800 in the actual check.

Before you resign, check two things

First, your state: some states legally require payout of accrued vacation, others leave it to policy. Second, your handbook: "use it or lose it" clauses, payout caps, and notice-period requirements are all common. If your state treats vacation as earned wages, a company policy can't take it away — timing your departure after your next accrual date can be worth hundreds of dollars.

Frequently asked questions

How is PTO payout calculated?

Multiply your unused PTO hours by your hourly pay rate. Salaried employees first convert salary to hourly by dividing annual pay by 2,080 (a 40-hour week). 80 unused hours on a $62,400 salary pays out 80 × $30 = $2,400 before taxes.

Do employers have to pay out unused PTO?

It depends on the state. States including California, Colorado, and Illinois treat earned vacation as wages that must be paid out at separation. Many others only require payout if company policy promises it — so check both your state law and your employee handbook.

Is PTO payout taxed higher than regular pay?

It's taxed as ordinary income, but employers often withhold at the flat 22% federal supplemental rate, which can make the check look smaller. Any over-withholding comes back as a refund when you file.

How many PTO days is 80 hours?

For a standard 8-hour workday, 80 hours of PTO equals 10 days — two full work weeks.

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