Tools · PTO Payout

What's your unused PTO worth?

Accrued vacation you never took is often paid out when you leave — real cash that extends your runway. Size it before you hand in your notice, and factor it into your exit timing.

Last updated: June 2026

Unused PTO (paid time off) — vacation days, and in some jurisdictions sick leave — is often paid out in cash when you leave a job, either voluntarily or through layoff. Whether it's owed, and how much, depends heavily on your location and your employer's written policy, so it's worth sizing this precisely before you resign or negotiate a severance package.

How it's calculated

The payout is generally: (accrued unused PTO hours) × (your regular hourly rate). For salaried employees this means converting annual salary to an hourly-equivalent rate first (see the salary-to-hourly calculator) — annual salary ÷ (typically around 2,080 hours for a standard 40-hour work year) as a common baseline, though actual paid hours per year can differ.

Why it varies so much by location

In the US, there is no federal law requiring PTO payout at termination — it comes down entirely to state law and company policy. Some US states (like California) treat earned vacation as a form of wages that must be paid out and prohibit "use-it-or-lose-it" forfeiture policies, while many other states leave it entirely to the employer's written policy, meaning "unlimited PTO" policies can sometimes result in zero payout since there's technically nothing "accrued."

Common pitfalls

Assuming payout rules are the same everywhere is the single biggest mistake — always check your specific state's labor law and your employee handbook's written policy before counting on this money as part of your exit runway. Also worth checking: whether your company distinguishes between vacation (often payable) and general "PTO" or sick leave (frequently not payable) in its policy language, since the label matters legally in many jurisdictions.

US supplemental withholding is ~22% federal; add state + payroll. Set to your own rate.

Estimated PTO payout

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Time your exit right → Add it to my runway
A gross estimate — payout rules and tax vary by country, state and employer. Confirm your accrued balance and policy with HR. Not tax or legal advice.

Frequently asked questions

Do you get paid for unused PTO when you quit?
In many places, yes — accrued, unused vacation is paid out in your final paycheck, though it depends on your country, state and employer policy. Some US states require payout; others leave it to company policy.
How is a PTO payout calculated?
Multiply your unused days by your daily rate (annual salary ÷ working days in the year). The calculator derives your hourly and daily rate from your salary and hours, then multiplies by the days you have left.
Is a PTO payout taxed?
Yes — it's taxable wages. In the US it's often withheld at the higher supplemental rate (~22% federal), plus state and payroll taxes, so the net is noticeably less than the gross.
Should I use my PTO or cash it out before quitting?
It depends on policy and tax. Taking the time off keeps you on payroll and benefits longer; cashing out is a lump sum that may be taxed at the supplemental rate. Check the exit-timing checklist first.