Calculator
Formula used
- Scheduled working days/year = weeks per year × workdays per week
- Daily rate
- Hourly basis: hourly rate × hours per day
- Daily basis: daily pay
- Weekly basis: weekly pay ÷ workdays per week
- Monthly/annual basis: annualized pay ÷ scheduled working days
- Total paid leave (days) = vacation + sick + holidays + personal + other
- Paid leave value (gross) = (daily rate × paid leave days) + (hourly equivalent × extra paid hours)
- Net estimate = gross × (1 − tax estimate)
- Effective hourly (worked) = annual compensation ÷ (worked days × hours/day)
- Equivalent salary with zero PTO = annual compensation × scheduled days ÷ (scheduled days − paid leave days)
How to use this calculator
- Choose your pay basis and enter the pay amount.
- Set your schedule: workdays/week, hours/day, weekly hours, and weeks/year.
- Enter paid leave days by category. Add extra paid hours if needed.
- Optionally add bonus/allowances, a tax estimate, and a leave cash-out rate.
- Press Calculate. Use downloads to save results.
Example data table
| Scenario | Annual comp | Paid leave (days) | PTO value (gross) | PTO value (net) | Effective hourly (worked) |
|---|---|---|---|---|---|
| Offer A (salary, standard PTO) | $60,000.00 | 32.00 | $7,384.62 | $6,055.38 | $32.89/hr |
| Offer B (hourly, modest PTO) | $58,240.00 | 22.00 | $4,928.00 | $4,188.80 | $30.59/hr |
| Offer C (salary + bonus, richer PTO) | $80,000.00 | 38.00 | $10,961.54 | $8,550.00 | $45.05/hr |
Why paid leave changes total compensation
Paid time off is part of compensation because it preserves income while reducing required working days. For a 260‑day schedule, 20 paid days represent 7.7% of working time. If base pay is 60,000, that slice can be worth about 4,600 before taxes. When comparing offers, a small difference in leave can offset a larger salary gap, especially in roles with strict schedules and limited overtime flexibility each year.
Converting time off into a day rate
The calculator estimates a daily rate from your pay basis and schedule. Annual pay is divided by scheduled working days, while hourly pay uses hourly rate × hours per day. Then, gross leave value equals daily rate × paid leave days, plus hourly equivalent × any extra paid hours. This approach keeps comparisons consistent across salaried and hourly roles. If weekly hours and hours/day disagree, adjust inputs to reflect your real typical work pattern.
Comparing offers with different schedules
Schedules change the meaning of a “day.” A compressed week (4×10) gives fewer workdays but longer days, so entering both workdays/week and hours/day prevents undercounting PTO hours. Use weeks/year to handle seasonal roles or planned shutdowns. The effective hourly (worked) metric divides total annual compensation by hours actually worked after paid and unpaid leave, revealing how leave boosts your earnings rate per hour. It helps normalize shift patterns.
Cash-out rules and carryover limits
Not all leave has the same economic value. Some employers pay out unused vacation at termination, while sick or holiday balances may not convert to cash. The cash‑out fields model that policy by applying a payout percentage to the gross leave value, then estimating taxes. For example, a 75% cash‑out on 5,000 of unused leave yields 3,750 gross. Recording carryover limits helps plan end‑of‑year usage strategically.
Using results for negotiation and planning
Use the outputs to communicate tradeoffs. If an offer has 10 fewer paid days, compute the missing value and translate it into an equivalent salary increase request. Pair the net leave value with your tax estimate when budgeting for childcare and time away. The share‑of‑pay percentage highlights benefit competitiveness, while the equivalent salary with zero PTO shows salary needed to match the same workload. Save reports for discussions in writing.
FAQs
What counts as paid leave in this calculator?
Include paid vacation, sick days, paid holidays, personal days, and any other paid days off. Add extra paid hours for partial-day banks. Unpaid leave is entered separately and reduces worked time metrics.
Should I include bonuses and allowances?
Include amounts you expect to receive with high confidence, such as guaranteed bonuses, contractually defined incentives, or fixed stipends. If a bonus is uncertain, run two scenarios to see the range of outcomes.
How is the net paid leave value estimated?
Net value applies your tax estimate to the gross leave value. It is a planning number, not a payroll calculation. If your marginal rate differs from your average rate, adjust the tax field accordingly.
How do I compare an hourly offer to a salary offer?
Select the correct pay basis for each offer and keep schedule fields consistent. Enter the same workdays, hours per day, and weekly hours so the daily rate and PTO value are comparable across roles.
Why are there two hourly rates shown?
Payroll hourly spreads annual compensation over scheduled hours. Effective hourly (worked) spreads it over hours actually worked after paid and unpaid leave. More paid leave usually increases the effective hourly figure.
What if my PTO is tracked as hours, not days?
Enter any full-day amounts as days, then place the remaining balance in extra paid hours. Ensure hours per day matches your organization’s definition so the conversion from hours to days stays consistent.