PTO Payout Calculator
| Unused days | At $20/hr | At $28/hr | At $40/hr |
|---|---|---|---|
| 5 days | $800 | $1,120 | $1,600 |
| 10 days | $1,600 | $2,240 | $3,200 |
| 15 days | $2,400 | $3,360 | $4,800 |
| 20 days | $3,200 | $4,480 | $6,400 |
Unused vacation is the money most American workers quietly give back. Federal law requires employers to pay out precisely nothing, so whether your leftover days convert into a check on your last day is decided by two documents: your state's wage law and your employee handbook. In California, accrued vacation is earned wages — no use-it-or-lose-it forfeiture allowed; in most other states, the handbook's payout clause is the only thing standing between your banked time and zero.
This calculator prices the balance you are actually carrying. Six unused days on a $28-an-hour wage with 8-hour days is $1,344 gross — roughly $1,000 after typical withholding — real money for a policy clause most people never read. The deadline hiding in that clause is usually December 31: the classic use-it-or-lose-it cliff where staying employed costs you the same days you would have been paid for leaving.
How to use
- Pull your unused balance from the HR portal, not from memory — accrued-but-unshown days are the ones that get lost. Then check two handbook clauses before trusting any number: whether unused days cap, and whether the policy pays out at separation at all.
- Enter your real hourly rate — salaried workers: annual salary divided by 2,080 — and your standard scheduled day length (8 hours for most full-time roles). The calculator prices the day, the workweek equivalent, and the after-withholding estimate.
- Read the last number as the planning figure, not the promise: a payout at separation is mandatory only where state law or written policy says so. Everywhere else, the December 31 policy cliff — not your resignation date — is the deadline that decides whether the days are worth cash or nothing.
Frequently asked questions
Is my employer required to pay out unused PTO when I quit?
Federal law, no — the FLSA treats promised vacation benefits as an agreement between you and the employer, not wages. State law is where it gets real: California is the strictest (accrued vacation is earned wages, no forfeiture allowed), and a handful of states including Colorado and Illinois reach similar conclusions through wage-claim rules. Everywhere else, the written policy decides — which is why the handbook, not the statute, is the document to read.
How much tax is withheld on a PTO payout?
A payout is supplemental wages: a flat 22 percent federal withholding, plus 6.2 percent Social Security and 1.45 percent Medicare up to each year's wage base, plus state income tax where it applies. That lands most people at roughly 70-75 cents on the dollar — which is why the calculator's after-tax estimate uses about a quarter off, and why the gross number flatters what actually hits your account.
Do unused PTO days expire if I stay employed?
In most states, yes — a use-it-or-lose-it policy is legal as long as it is written down and employees get a reasonable chance to use the time. California again is the exception: there, earned vacation cannot be forfeited, and a policy that wipes it is a wage claim. The practical deadline everywhere is the policy year end — December 31 at most companies — which is why balances get audited in November, not January.
Should I use my PTO before quitting or take the payout?
If you can actually take the time, take the time: days used are worth 100 cents on the dollar, keep your health insurance running to the last day, and do not complicate your start date at the next job. The payout is for the days you cannot use — cash now, haircut by withholding, but unaffected by whether the calendar cooperates. Run both numbers here before you give notice, because a two-week notice period plus a December 31 cliff can move the answer either way.