The four ways PTO accrues
Employers usually use one of these methods. The calculator handles all four.
- Per hour worked. You earn a fixed amount for every hour you work, such as 1 hour per 30.
- Per pay period. A set number of hours lands with each paycheck.
- Per year, accrued each pay period. The yearly allowance is split evenly across paychecks.
- All at once. The full year’s allowance is granted on the first day of the plan year.
In the example above, 120 hours a year paid every two weeks earns 4.62 hours a pay period. Starting from 80 hours with a 160-hour cap, the balance reaches the cap in pay period 18. After that, 40 hours that would have been earned that year are not, unless some time is used.
PTO per pay period
| PTO a year | Weekly | Every two weeks | Twice a month | Monthly |
|---|---|---|---|---|
| 40 h (5 days) | 0.77 h | 1.54 h | 1.67 h | 3.33 h |
| 80 h (10 days) | 1.54 h | 3.08 h | 3.33 h | 6.67 h |
| 120 h (15 days) | 2.31 h | 4.62 h | 5 h | 10 h |
| 160 h (20 days) | 3.08 h | 6.15 h | 6.67 h | 13.33 h |
Working out an accrual rate
To turn a yearly allowance into a per-hour rate, divide it by the hours worked in a year. Full time is usually 2,080 hours (40 × 52). 80 hours of PTO a year is 0.0385 hours per hour worked, which is about 1 hour for every 26 worked. Pick Per hour worked in the calculator to use a rate directly; it also shows the rate for whichever method you choose.
Prorated PTO
Prorating scales PTO to how much you work. A part-time employee on 20 hours a week, under a policy of 80 hours a year for full-time staff, earns about 40 hours a year when the policy prorates by hours. Start mid-year under a front-loaded plan and many employers grant only the share of the year left. Enter your real hours per week and the calculator prorates any per-hour accrual automatically.
Caps, carryover and state law
A cap is the most PTO you can hold at once. A carryover limit is how much can roll into the next plan year; anything above it is lost at the reset. The calculator shows both, so you can see how many hours each one costs you.
State law decides whether those limits are allowed and whether unused time is paid when a job ends. In California, for example, earned vacation cannot be taken away but a reasonable cap on accrual is allowed. See PTO payout laws by state for your state’s rule, and the PTO payout calculator for what a balance is worth.
Questions people ask
How do I calculate PTO accrual per pay period?
Divide the yearly PTO allowance by the number of pay periods in a year. 120 hours a year paid every two weeks is 120 ÷ 26 = 4.62 hours a pay period; paid twice a month it is 120 ÷ 24 = 5 hours.
How do I calculate PTO based on hours worked?
Multiply the hours you worked by the accrual rate. At 1 hour of PTO for every 30 worked, 80 hours in a pay period earns 2.67 hours, and a full-time year earns about 69.33 hours.
What is a PTO accrual rate?
The PTO you earn for each hour worked. 80 hours of PTO over a 2,080-hour work year is 80 ÷ 2,080 = 0.0385 hours of PTO per hour worked, or about 1 hour for every 26 worked.
What does prorated PTO mean?
PTO scaled to the time or hours you actually work. Someone working 20 hours a week under a policy of 80 hours a year for full-time staff would earn about 40 hours, and someone starting halfway through the plan year would get about half the year’s allowance.
Can my employer cap PTO accrual?
In most states, yes. A cap stops you earning more once your balance reaches it; you start earning again after you use some time. Some states treat vacation as earned wages that cannot be taken away once earned, but still allow a reasonable cap on future accrual.
Do I lose unused PTO at the end of the year?
It depends on your employer’s policy and your state. California, Colorado, Montana do not allow use-it-or-lose-it policies for earned vacation; several others allow them only with advance notice. The PTO payout laws page lists each state.