How to use this calculator
Most PTO policies are written in days per year, but payroll systems accrue in hours per pay period or per hour worked. Translating one into the other, and doing it the same way for full-time and part-time employees, is where policies quietly drift. This calculator gives you the rates to set up in payroll.
Enter the annual allowance, your pay frequency, and scheduled hours. Add a cap if your policy limits balances. For writing or updating the policy itself, read our PTO policy guide.
- Enter the annual PTO in days and the length of a workday.
- Pick the pay frequency your payroll uses.
- Enter scheduled hours per year. Use 2,080 for full time.
- Add a balance cap if your policy has one, to see how long it takes to reach it.
How it's calculated
Annual PTO hours = PTO days x hours per day
Accrual per pay period = annual PTO hours / pay periods per year
Accrual per hour worked = annual PTO hours / scheduled hours per year
Hourly accrual is the fairest method for part-time and variable-hour employees, because accruals rise and fall with hours actually worked.
Worked example
A company gives full-time employees 15 days of PTO, at 8 hours a day, which is 120 hours a year. On a biweekly payroll, each employee accrues 4.62 hours per paycheck, or 0.0577 hours for every hour worked.
The policy caps balances at 1.5 times the annual amount, 180 hours. An employee who takes no time off reaches the cap after about 18 months, and stops accruing until they use some time. In California, a cap like this is allowed, while a use-it-or-lose-it rule that forfeits earned time is not.
Rules to know
No federal law requires paid vacation. Many states and cities require paid sick leave, often accruing at least 1 hour for every 30 hours worked, with their own caps, carryover, and usage rules. If your PTO policy is meant to satisfy a sick leave law, it must meet that law's minimums. Some states, including California, treat earned vacation as wages that can't be forfeited. See the PTO payout calculator for what happens at separation.
This is general information for US employers, not legal or tax advice. Rates and rules change and vary by state and city, so confirm current figures with the agency or a qualified advisor.
Common mistakes
- Giving part-time employees full-time accruals by using pay periods instead of hours worked.
- Writing a use-it-or-lose-it rule in a state that prohibits forfeiting earned vacation.
- Assuming a PTO policy satisfies every local sick leave law.
- Changing accrual rates without notice to employees.
Email templates that go with this
Once you have the number, these templates help you explain it to employees, candidates, or managers.
Where to go from here
A calculator answers one question. The right process and software keep the numbers right every pay period.
Frequently asked questions
How is PTO accrual calculated?
How much PTO is 15 days in hours?
Is accrued PTO paid out when someone leaves?
Can employers cap PTO accrual?
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.