How to use the vacation payout calculator
- Choose whether your pay is a yearly salary or an hourly wage and enter the amount. For a salary, enter the hours per week and the paid weeks per year.
- Enter the unused vacation balance in hours or in days. For days, enter the hours in a work day.
- Under advanced options, enter the share of the balance your employer pays, a limit on the hours that can be paid out and an estimated withholding percent if you want to see an amount after withholding.
- Read the gross payout, the hourly pay used and the hours that are paid and not paid.
Formula
Hourly pay from salary = yearly salary / (hours per week x paid weeks)
Hours counted = lesser of the balance and the limit, if you entered one
Hours paid = hours counted x share paid out
Gross payout = hours paid x hourly pay
The payout is rounded to the cent once at the end. Estimated withholding is the percent you enter times the gross payout.
80 unused hours on a $62,400 salary
A $62,400 salary for 40 hours a week and 52 paid weeks is $30.00 an hour. A balance of 80 hours is worth 80 x $30.00 = $2,400.00 in gross pay. The same balance entered as 10 days of 8 hours gives the same result.
If the policy pays only 50% of the balance, the payout is $1,200.00. If a limit of 40 hours applies, it is also $1,200.00. With a 20% withholding estimate on the $1,200.00, about $240.00 would be withheld.
What decides whether you are paid
Whether unused vacation is paid when employment ends, and how much, depends on the state, your employer policy and your agreement. Some employers pay the full balance, some pay none, and some limit how much you can carry. This calculator assumes you know what will be paid, and works out the dollars.
The tool uses the hourly pay you enter or derive. Some policies use the pay rate at the time of separation, and others an earlier rate. Enter the rate your policy uses.
Other pages that help
To see how much time off you build each pay period, use the PTO accrual calculator. Employers can estimate what unused time costs them with the accrued PTO liability calculator.
If you are leaving a job, the severance pay calculator estimates a separation package, and the gross pay calculator converts pay between periods.
Assumptions and limits
- Hourly pay is the wage you enter, or the salary divided by the hours worked in a year.
- The share paid out, the limit and the withholding percent are your own numbers and are optional.
- Taxes, deductions and the way a lump sum is withheld are not modeled beyond the percent you enter.
- Rules vary by state, employer and contract. This is not legal or payroll advice.
Frequently asked questions
How do I calculate vacation payout?
Multiply the unused vacation hours by your hourly pay. For a salary, divide it by the hours worked in a year first. Eighty hours at $30.00 is $2,400.00.
How do I convert vacation days to hours?
Multiply the days by the hours in a work day. Ten days of 8 hours is 80 hours.
Is a vacation payout taxed differently?
The payout is generally taxable pay, and the amount withheld depends on how your employer handles it. Enter an estimated percent in the advanced options to see an amount after withholding.
What if my policy limits the payout?
Enter the most hours that can be paid out and, if only part is paid, the share. The tool applies the limit first and then the share, and shows the hours that are not paid.