calculator template · Free download
PTO Accrual Calculator
Free PTO accrual calculator: hours earned per pay period or per hour worked, with balance caps, carryover and a year-end projection, plus a ledger.
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Calculate PTO accrual
See how many PTO hours an employee earns each pay period, either as a fixed share of an annual allowance or per hour worked. Add a balance cap and a carryover limit to project the year-end balance.
Accrual method
- PTO accrued per pay period
- 4.615 hrs
- Annual allowance
- 120.00 hrs
- Accrued over 26 pay periods
- 120.00 hrs
- Used over the year
- 78.00 hrs
- Year-end balance
- 82.00 hrs
- Not earned because of the cap
- 0.00 hrs
- Carried into next year
- 40.00 hrs
- Above the carryover limit
- 42.00 hrs
Hours above the carryover limit are forfeited or paid out, depending on your policy and state. California does not allow earned vacation to be forfeited, and Montana and Nebraska restrict it too, so a balance cap is the safer tool there.
Pay-period ledger
| Period | Opening | Accrued | Used | Closing |
|---|---|---|---|---|
| 1 | 40.000 | 4.615 | 3.000 | 41.615 |
| 2 | 41.615 | 4.615 | 3.000 | 43.231 |
| 3 | 43.231 | 4.615 | 3.000 | 44.846 |
| 4 | 44.846 | 4.615 | 3.000 | 46.462 |
| 5 | 46.462 | 4.615 | 3.000 | 48.077 |
| 6 | 48.077 | 4.615 | 3.000 | 49.692 |
| 7 | 49.692 | 4.615 | 3.000 | 51.308 |
| 8 | 51.308 | 4.615 | 3.000 | 52.923 |
| 9 | 52.923 | 4.615 | 3.000 | 54.538 |
| 10 | 54.538 | 4.615 | 3.000 | 56.154 |
| 11 | 56.154 | 4.615 | 3.000 | 57.769 |
| 12 | 57.769 | 4.615 | 3.000 | 59.385 |
| 13 | 59.385 | 4.615 | 3.000 | 61.000 |
| 14 | 61.000 | 4.615 | 3.000 | 62.615 |
| 15 | 62.615 | 4.615 | 3.000 | 64.231 |
| 16 | 64.231 | 4.615 | 3.000 | 65.846 |
| 17 | 65.846 | 4.615 | 3.000 | 67.462 |
| 18 | 67.462 | 4.615 | 3.000 | 69.077 |
| 19 | 69.077 | 4.615 | 3.000 | 70.692 |
| 20 | 70.692 | 4.615 | 3.000 | 72.308 |
| 21 | 72.308 | 4.615 | 3.000 | 73.923 |
| 22 | 73.923 | 4.615 | 3.000 | 75.538 |
| 23 | 75.538 | 4.615 | 3.000 | 77.154 |
| 24 | 77.154 | 4.615 | 3.000 | 78.769 |
| 25 | 78.769 | 4.615 | 3.000 | 80.385 |
| 26 | 80.385 | 4.615 | 3.000 | 82.000 |
How the math works, with sources
Per pay period: annual hours (days x hours per day x FTE) / pay periods in the year. 15 days of 8 hours on biweekly payroll is 120 / 26 = 4.615 hours per period.
Per hour worked: hours worked / the hours needed to earn one PTO hour. At 1 hour per 30 worked, an 80-hour pay period earns 2.667 hours. California's paid sick leave law sets that 1-for-30 minimum and lets employers cap the stored sick balance, but not below 80 hours or 10 days.
The projection adds accrual, stops it at the cap, then subtracts hours used, once per pay period. A cap pauses new accrual; it never takes away hours already earned.
Federal law (the FLSA) does not require paid vacation, so the rate, cap and carryover come from your policy and state law. California treats earned vacation as wages: use-it-or-lose-it is illegal there, a cap is allowed, and unused vacation is paid at the final rate of pay when employment ends.
For context, BLS reports that private-industry workers averaged 11 paid vacation days after 1 year of service, 16 after 5 years, 18 after 10 and 20 after 20 (National Compensation Survey, March 2026).
This is a planning tool, not legal advice. Check state and city leave laws before setting caps or forfeiture.
Sources: DOL: vacation leave, California DLSE vacation FAQ, California DLSE paid sick leave, BLS paid vacation days by length of service.
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What you get
- Accrual-rate tables for weekly, biweekly, semimonthly, monthly, and per-hour-worked plans
- A tenure-tier table with annual hours and per-period rates already calculated
- Proration formulas for mid-year hires and part-time FTEs, with worked examples
- A running PTO balance ledger (opening, accrued, used, closing) with blank rows
- State notes on accrual caps, use-it-or-lose-it, payout at termination, and separate sick leave
Template preview
A preview of the structure. Download the PDF or CSV for the complete, ready-to-use version.
Accrual inputs
- Employee name and ID
- Work state / country
- Hire date— Drives proration and tenure tier
- Annual PTO entitlement (hours)— e.g. 120 hours = 15 days of 8 hours
How PTO accrual works
Accrual means employees earn paid time off gradually as they work instead of receiving the full year's bank on January 1. It limits the liability of someone taking two weeks off in their first month and leaving, and it keeps the balance on the books roughly in line with time worked. The two common methods are a fixed amount per pay period and a fixed amount per hour worked. Either works as long as the policy states the rate, the cap, and what happens to unused hours.
Per-pay-period accrual rates (120 hours per year)
Per-period rate = annual hours / number of pay periods. Keep three decimals in payroll.
| Pay frequency | Periods per year | Formula | Hours per period |
|---|---|---|---|
| Weekly | 52 | 120 / 52 | 2.308 |
| Biweekly | 26 | 120 / 26 | 4.615 |
| Semimonthly | 24 | 120 / 24 | 5.000 |
| Monthly | 12 | 120 / 12 | 10.000 |
Per-hour-worked accrual
Rate per hour worked = annual hours / expected hours worked. 1 hour per 30 worked is the rate many state paid sick leave laws use.
| Accrual rate | Hours worked | Formula | Hours accrued |
|---|---|---|---|
| 1 hr per 30 worked | 80 (biweekly) | 80 / 30 | 2.667 |
| 1 hr per 30 worked | 86 (biweekly with OT) | 86 / 30 | 2.867 |
| 1 hr per 30 worked | 2,080 (full year) | 2,080 / 30 | 69.333 |
| 0.0577 hr per hour worked (120/2,080) | 2,080 (full year) | 2,080 x 0.0577 | 120.016 (use 120 cap) |
Decide in the policy whether overtime hours earn accrual. Per-hour-worked plans usually include them, which is why the 86-hour row accrues more. Most plans exclude PTO hours themselves from the hours-worked base, so time off does not generate more time off.
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How to use this template
- 1
Pick an accrual method
Choose per pay period for salaried staff with steady schedules, or per hour worked for hourly and variable-schedule staff. Write the method into your PTO policy so payroll and employees read it the same way.
- 2
Set the annual entitlement and per-period rate
Divide annual hours by the number of pay periods (or by hours worked in a year) and keep at least three decimal places so rounding does not drift over 26 periods.
- 3
Apply caps and proration
Set an accrual cap or carryover cap, then prorate the entitlement for mid-year hires and for part-time employees by FTE.
- 4
Run the ledger every pay period
Record the opening balance, hours accrued, hours used, and closing balance for each employee, and reconcile to the payroll system at least quarterly.
- 5
Check state rules before finalizing
Confirm whether your states allow forfeiture, require payout at termination, or require a separate paid sick leave accrual.
Frequently asked questions
How do I calculate PTO accrual per pay period?
Divide the annual PTO hours by the number of pay periods in the year. For 120 hours on biweekly payroll that is 120 / 26 = 4.615 hours per period; on semimonthly payroll it is 120 / 24 = 5.000. Keep three decimals so the year totals correctly.
What is a typical PTO accrual rate?
BLS National Compensation Survey data for March 2026 show private-industry workers averaging 11 paid vacation days after 1 year of service, 16 after 5 years, 18 after 10, and 20 after 20. Many employers start at 10 to 15 days (80 to 120 hours) and add days at set service milestones. On an hours-worked basis, 120 hours a year across 2,080 hours works out to about 0.0577 hours per hour worked. Paid sick leave laws commonly set a floor of 1 hour per 30 worked.
How much PTO do you accrue for 40 hours worked?
It depends on the plan's annual entitlement. On a 120-hour (15-day) plan, the rate is 120 / 2,080 = 0.0577 hours per hour worked, so 40 hours earns about 2.31 hours of PTO. On an 80-hour (10-day) plan it is about 1.54 hours. Under a 1-hour-per-30-worked sick leave rule, 40 hours earns 1.33 hours.
Does 3 weeks of PTO mean 15 days or 21 days?
For a full-time employee on a five-day week, 3 weeks of PTO normally means 15 working days, or 120 hours at 8 hours a day. Weekends inside the time off are not counted. Write the entitlement in hours or working days in the policy so there is no doubt.
Can an employer cap PTO accrual?
Yes. An accrual cap that pauses new accrual once the balance reaches a ceiling is allowed even in California, Montana, and Nebraska, because nothing already earned is taken away. What those states prohibit is forfeiting earned vacation, as in use-it-or-lose-it policies.
How do I prorate PTO for a new hire?
Multiply the annual entitlement by the fraction of the year remaining. Someone hired April 1 with a 120-hour plan gets 120 x 9 / 12 = 90 hours for the first year. On per-period accrual, proration happens naturally because they only accrue for the pay periods they are employed.
How is PTO calculated for part-time employees?
Multiply the full-time entitlement by the employee's FTE, or accrue per hour worked at the same rate as full-time staff. A 0.6 FTE employee on a 120-hour plan earns 72 hours a year, or 2.769 hours per biweekly period.
Do I have to pay out unused PTO when an employee leaves?
It depends on the state. California, Colorado, Illinois, Massachusetts, Montana, and Nebraska require payout of earned, unused vacation; elsewhere, your written policy usually controls. Pay it at the employee's final rate and include it in the final paycheck on the state's deadline.