What this calculator does
PTO accrual rate is how much paid time off an employee earns each pay period, based on an annual allotment spread evenly across the year. Rather than crediting the full annual balance on day one, most employers accrue it gradually as each pay period is worked.
Knowing the accrual rate makes it straightforward to work out a running balance at any point in the year: multiply the per-period accrual by however many pay periods have actually been worked so far, which is the figure most payroll systems display on a payslip.
The formula
Divide the annual PTO hours allotted by the number of pay periods in the year to get the accrual per period. Multiply that per-period figure by the number of pay periods worked so far to get the running balance.
| Term | Meaning |
|---|---|
| Accrual per pay period | The PTO hours earned in a single pay period: annual PTO hours ÷ pay periods per year. |
| Pay periods per year | How often pay is run, such as weekly (52), fortnightly (26) or monthly (12). |
| Running balance | The total PTO hours accrued so far: accrual per period × pay periods worked. |
The inputs explained
| Field | What to enter |
|---|---|
| Annual PTO hours allotted | The total PTO hours allotted for a full year. |
| Pay periods per year | The number of pay periods in a year, such as 52 for weekly or 26 for fortnightly pay. |
| Pay periods worked so far this year | The number of pay periods that have actually been worked so far this year. |
When to use it
Explaining a payslip PTO balance
A running PTO balance on a payslip is just the per-period accrual multiplied by periods worked, and this shows exactly how that number was reached.
Planning leave around an accrual schedule
Knowing the accrual rate lets an employee work out how many pay periods they need to work before they have accrued enough PTO for planned leave.
Comparing pay frequencies
The same annual PTO allotment accrues in different-sized chunks depending on whether pay runs weekly, fortnightly or monthly, which matters when switching pay cycles.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the running balance grows as pay periods worked increase
A fixed 120-hour annual allotment on fortnightly pay, against a range of periods worked so far.
| Pay periods worked | Balance after periods worked |
|---|---|
| 2 | 9.2 hours |
| 6 | 27.7 hours |
| 10 | 46.2 hours |
| 14 | 64.6 hours |
| 20 | 92.3 hours |
| 26 | 120.0 hours |
How accrual per period changes with pay frequency at a fixed annual allotment
A fixed 120-hour annual allotment, against a range of pay frequencies.
Questions
Does PTO accrual always work this way?
Many employers accrue PTO evenly across pay periods as shown here, but some use different schedules, such as front-loading the full annual balance or tiering the rate by tenure. Check the specific policy in force before relying on this as the exact figure.
What happens to unused PTO at year end?
That depends entirely on the employer’s policy and applicable law: some allow unused PTO to carry over, some cap how much carries over, and some pay it out or forfeit it. This calculator only covers accrual, not carryover rules.
Can accrual rate change during the year?
Yes, some policies increase the accrual rate after a tenure milestone, such as after two or five years of service. Where that applies, calculate each period at the rate that was in effect during it.
Is PTO the same as annual leave?
PTO is often used as a broader term that can bundle annual leave with personal or sick leave into a single balance, while some jurisdictions and employers track annual leave separately. Use whichever definition matches the policy being calculated.
For the overtime pay owed on any extra hours worked outside the regular schedule, see the overtime pay calculator.