How this calculator works
Vacation pay (also called PTO or paid time off) is compensation for time an employee takes off work. In the US, no federal law requires paid vacation — but most employers offer it as a benefit, and several states (California, Colorado, others) regulate how it accrues and pays out. This calculator helps employees understand their accrual and helps employers compute PTO liabilities.
Enter your hourly rate (or annual salary), hours worked per pay period, accrual rate (hours of PTO earned per hour worked), and hours of PTO used. The calculator shows accrued PTO hours, accrued PTO dollar value, and remaining balance. Common accrual rates: 0.01923 (2 weeks/year for 40-hour weeks), 0.02884 (3 weeks), 0.03846 (4 weeks).
Two legal notes. First, in states like California, earned PTO is considered wages — it must be paid out when you leave the job. Second, 'use it or lose it' policies are illegal in some states; check your local labor law before assuming forfeited PTO stays with the employer. Always read your employee handbook and state labor code to understand your specific rights.
The formula
PTO Accrued (hours) = Hours Worked x Accrual Rate
PTO Value = PTO Hours x Hourly Rate
PTO Balance = Accrued - Used
Annual PTO (hours) = 2,080 x Accrual Rate (for 40-hour weeks, 52 weeks)
Worked example
An employee earns $30/hour and accrues PTO at 0.01923 hours per hour worked (2 weeks/year). After 6 months working 40 hours/week: hours worked = 1,040. PTO accrued = 1,040 x 0.01923 = 20 hours (half of the annual 40). If they've used 8 hours, balance = 12 hours. Dollar value = 12 x $30 = $360. If they leave the job in a state that requires payout, they receive $360 in final wages.
For a salaried employee earning $75,000 with 3 weeks PTO: annual PTO hours = 120 (3 weeks x 40 hours). Hourly equivalent = $75,000 / 2,080 = $36.06. PTO value = 120 x $36.06 = $4,327. This is part of total compensation, often overlooked when comparing job offers.
Methodology and sources
PTO accrual calculations follow employer policies within state regulatory frameworks. The accrual rate (PTO hours per hour worked) is set by the employer; common rates: 0.01923 (2 weeks/year), 0.02884 (3 weeks), 0.03846 (4 weeks). Some employers use tenure-based scales (more PTO after 5 years, 10 years, etc.).
State regulations: California, Colorado, Illinois, and others treat earned PTO as wages that must be paid out at termination. 'Use it or lose it' policies are illegal in these states. California requires that accrual caps allow employees sufficient time to use accrued PTO.
PTO value is computed at the employee's current rate, not their historical rate. If you've received raises since accruing PTO, the payout is at the higher current rate.
Sources: State labor codes (California Labor Code 227.3, Colorado Wage Act); SHRM PTO policy guidance; BLS benefits data.
Industry benchmarks
PTO benchmarks (BLS data, 2024):
- Average PTO after 1 year: 11 days (private industry)
- Average PTO after 5 years: 15 days
- Average PTO after 10 years: 18 days
- Average PTO after 20 years: 20 days
- Federal government: 13 days (years 1-3), 20 days (years 3-15), 26 days (15+ years)
- State government average: 15-21 days
- Tech industry average: 15-20 days + unlimited PTO (varies)
- European Union mandate: Minimum 20 days paid vacation (4 weeks)
The US is the only developed country without mandated paid vacation. Employer benefits vary widely.
Common mistakes to avoid
Mistake 1: Not tracking PTO accrual. Employees should track their own PTO balance, not rely on employer records. Discrepancies are easier to resolve with your own documentation.
Mistake 2: Forgetting that PTO is earned wages. In many states, accrued PTO must be paid out at termination. Don't leave earned PTO on the table when changing jobs.
Mistake 3: Assuming 'use it or lose it' is legal. In California, Colorado, and other states, it's not. Check your state labor code before forfeiting accrued PTO.
Mistake 4: Not negotiating PTO with job offers. PTO is negotiable, especially at senior levels. An extra week of PTO is worth 2% of salary — significant.
Mistake 5: Ignoring PTO value when comparing job offers. A $75K job with 4 weeks PTO is worth more than an $80K job with 1 week PTO. Always include PTO value in total compensation comparisons.
When to use this calculator
Use this calculator to verify your PTO balance matches employer records, to estimate PTO payout when changing jobs, and to negotiate PTO in job offers. For employers, use it to compute PTO liability for financial reporting and termination payouts.
For job offer evaluation, compute the dollar value of PTO (hours x hourly rate) and add to salary for total compensation comparison. A job offering $70K with 4 weeks PTO may beat $75K with 1 week PTO.
Related metrics and alternatives
Total compensation calculator: Includes PTO value, benefits, and other compensation for complete picture.
Benefits value calculator: Quantifies the dollar value of employer benefits including PTO.
PTO accrual calculator (employer): Tracks accrual, usage, and liability for payroll purposes.
Job offer comparison calculator: Compares total compensation across multiple offers.
Work-life balance calculator: Evaluates PTO, flexible schedule, and remote work options.
How to interpret the results
PTO value > 5% of salary: Generous PTO policy. Common in tech, government, and European companies.
PTO value 3-5% of salary: Standard PTO (2-3 weeks). Typical for US employers.
PTO value < 3% of salary: Limited PTO (under 2 weeks). Below average — consider negotiating.
PTO balance > 80 hours unused: Risk of losing PTO if 'use it or lose it' policy applies (check state law). Plan time off to use accrued PTO.
PTO balance < 8 hours: Limited buffer for illness or emergencies. Build balance if possible.