Reviewed by: David Chen, CFA | Financial Compliance Expert
Unused vacation days can be a significant financial asset. Use our professional Leave Sell Back Calculator to determine the exact cash value of your accrued leave based on your current salary and employer policies.
Leave Sell Back Calculator
Please enter your details and click Calculate.
Leave Sell Back Calculator Formula
Formula: (Annual Salary / Annual Work Days) × Days to Sell Back
Variables:
- Gross Annual Salary: Your total yearly earnings before taxes.
- Annual Working Days: Usually 260 days (5 days/week × 52 weeks).
- Leave Days to Sell: The total number of unused vacation or PTO days you are cashing out.
- Tax Rate: The percentage deducted for federal/state income tax.
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What is a Leave Sell Back Calculator?
A Leave Sell Back Calculator is a financial tool used to estimate the monetary value of accrued, unused vacation or paid time off (PTO) that an employee chooses to “sell” back to their employer. Many companies offer this as a benefit, allowing employees to exchange time off for cash payments.
Understanding the “daily rate” is the foundation of this calculation. By dividing your gross annual income by the number of days you are expected to work, you determine how much each individual vacation day is worth in your specific contract.
How to Calculate Leave Sell Back (Example)
- Determine Daily Rate: If you earn $65,000 and work 260 days, your daily rate is $250.
- Identify Days: Suppose you have 5 days of unused leave to sell back.
- Multiply: $250 × 5 days = $1,250 gross payout.
- Apply Tax: Subtract your marginal tax rate to see the take-home amount.
Frequently Asked Questions (FAQ)
Is leave sell back taxed differently? Usually, it is treated as supplemental wages and taxed at your ordinary income rate, though withholding rates may vary.
Can my employer refuse to buy back leave? Yes, unless specified in your employment contract or state law (like in California for accrued vacation), buy-back programs are often discretionary.
What is the standard for annual working days? Most HR departments use 260 days for a full-time 40-hour week employee.
Does “Leave Sell Back” include sick leave? Generally, no. Most companies distinguish between vacation (sellable) and sick leave (non-sellable).