How PTO accrual works
Paid time off (PTO) is usually earned gradually rather than granted all at once. Employers typically use one of three methods:
- Per pay period — a fixed number of hours added each payday (e.g. 4.62 hours every two weeks).
- Per hour worked — common for hourly and part-time staff (e.g. 0.0577 hours for every hour worked).
- Annual lump sum — the full allowance is front-loaded at the start of the year or on the work anniversary.
This calculator converts an annual allowance into all three rates and projects the balance to a future date.
PTO accrual formulas
Accrual per pay period = Annual PTO hours ÷ Pay periods per year
Accrual per hour worked = Annual PTO hours ÷ (Hours per week × 52)
Worked example
An employee with 15 days of PTO and 8-hour days earns 120 hours a year. Paid biweekly (26 periods), that is 4.62 hours per paycheck. On a 40-hour week (2,080 hours a year), the per-hour rate is 0.0577 hours for every hour worked — about 1 hour of PTO for every 17 hours worked.
PTO accrual chart
Hours accrued per period for an 8-hour day and 40-hour week:
| Annual PTO | Weekly | Biweekly | Semi-monthly | Monthly | Per hour worked |
|---|---|---|---|---|---|
| 10 days (80 hrs) | 1.54 | 3.08 | 3.33 | 6.67 | 0.0385 |
| 12 days (96 hrs) | 1.85 | 3.69 | 4.00 | 8.00 | 0.0462 |
| 15 days (120 hrs) | 2.31 | 4.62 | 5.00 | 10.00 | 0.0577 |
| 20 days (160 hrs) | 3.08 | 6.15 | 6.67 | 13.33 | 0.0769 |
| 25 days (200 hrs) | 3.85 | 7.69 | 8.33 | 16.67 | 0.0962 |
Caps, carryover and payout
- Accrual caps stop new PTO from building up once a balance reaches a set maximum — often 1.5 to 2 times the annual allowance.
- Carryover limits restrict how much unused PTO rolls into the next year.
- "Use it or lose it" policies forfeit unused time at year-end. Some states, such as California, treat earned vacation as wages: it can't be forfeited and must be paid out when employment ends, though reasonable caps are allowed.
- Sick leave laws in many states and cities set minimum accrual rates (often 1 hour per 30 hours worked) separately from vacation.
Rules vary by state and city, so check local requirements or an employment adviser before setting a policy. This calculator is not legal advice.
PTO as a business liability
For employers, accrued but unused PTO is a real cost that sits on the balance sheet. Multiply each employee's balance by their hourly rate to estimate the liability — enter a pay rate above to see the value of a balance. Tracking it monthly avoids surprises at year-end or when someone leaves.
Frequently asked questions
How do I calculate PTO accrual per pay period?
Convert the annual allowance to hours (days × hours per day) and divide by the number of pay periods in the year: 52 weekly, 26 biweekly, 24 semi-monthly or 12 monthly. 120 hours a year paid biweekly is 4.62 hours per paycheck.
How many hours of PTO is 2 weeks?
Two weeks is 10 workdays — 80 hours on an 8-hour day. Paid biweekly, that accrues at about 3.08 hours per pay period.
How do I calculate PTO per hour worked?
Divide the annual PTO hours by the hours worked in a year (hours per week × 52). For 80 hours of PTO on a 40-hour week, that is 80 ÷ 2,080 = 0.0385 hours per hour worked.
What is a typical PTO accrual rate?
Many US employers offer roughly 10–15 days a year to start, rising with tenure. At 15 days and biweekly pay, that is about 4.6 hours per pay period.
Does PTO accrue on overtime hours?
It depends on the policy. Per-pay-period plans ignore overtime; per-hour plans may count all hours worked or only regular hours. Check your written policy.