How to Calculate PTO - Complete Guide
Learn how to calculate your paid time off with our comprehensive guide. We cover accrual calculations, hours to days conversions, payout values, and provide step-by-step examples for every scenario.
Understanding PTO Accrual
PTO accrual is the process of earning paid time off over time. Most employers calculate PTO based on hours worked, pay periods, or provide a lump sum annually. Understanding your accrual method is the first step to tracking your PTO.
Basic PTO Calculation Formula
For hourly accrual: PTO Earned = Hours Worked × Accrual Rate. For example, with 2080 hours worked and an accrual rate of 0.0385, you earn 80 hours (10 days) of PTO. For per-pay-period accrual: Annual PTO Hours ÷ Pay Periods = PTO per Period.
Converting Hours to Days
To convert PTO hours to days, divide by your daily work hours. Formula: PTO Days = PTO Hours ÷ Hours Per Workday. For an 8-hour day: 40 hours ÷ 8 = 5 PTO days.
Calculating PTO Payout Value
To find the cash value of your PTO: PTO Value = Accrued Hours × Hourly Rate. For salaried employees, calculate hourly rate as: Annual Salary ÷ 2080 hours.