PTO Accrual Rate Calculator
Use this accrual rate calculator to find the exact PTO accrual rate you need to give employees a target number of days off per year. Enter your target and pay period, and the calculator will give you the precise rate to use in your HR system.
Required accrual rate
4.62 hours
per pay period
Hours per week: 2.31
Total PTO hours per year: 120
To give an employee 15 days of PTO per year on a bi-weekly pay schedule, set the accrual rate to 4.62 hours per pay period.
Standard PTO Accrual Rates by Days Per Year
| Days / Year | Weekly | Bi-weekly | Semi-monthly | Monthly |
|---|---|---|---|---|
| 10 days | 1.54 | 3.08 | 3.33 | 6.67 |
| 15 days | 2.31 | 4.62 | 5 | 10 |
| 20 days | 3.08 | 6.15 | 6.67 | 13.33 |
| 25 days | 3.85 | 7.69 | 8.33 | 16.67 |
Calculations based on standard 8-hour workday and 52-week year.
Frequently Asked Questions
What is a PTO accrual rate?
A PTO accrual rate is the amount of paid time off an employee earns each pay period. Instead of receiving all their vacation days at once, employees accumulate PTO gradually with every paycheck. This helps businesses manage cash flow and encourages employees to plan time off in advance.
How do I set up PTO in a new business?
Start by deciding how many total days of PTO you want to offer per year. Then choose a pay period schedule — weekly, bi-weekly, semi-monthly, or monthly. Use an accrual rate calculator to determine the exact hours per pay period, then configure these settings in your payroll or HR software. Make sure to communicate the policy clearly to employees.
What is the difference between lump sum and accrual PTO?
Lump sum PTO gives employees their full annual allowance at the start of the year. Accrual PTO distributes the same total gradually throughout the year, with each paycheck. Accrual is more common because it reduces the financial risk of an employee taking all their time off early and then leaving the company.
What happens to unused PTO?
Policies vary by state and employer. Some companies allow unlimited rollover, some cap the amount that can carry over, and others enforce a "use it or lose it" policy. A few states require employers to pay out unused PTO when an employee leaves. Always check your local labor laws and clearly state your policy in the employee handbook.
Do part-time employees accrue PTO?
Yes, part-time employees can accrue PTO, but the rate is usually prorated based on hours worked. For example, an employee working 20 hours per week would accrue PTO at half the rate of a full-time employee. Make sure your HR system supports prorated accrual to stay fair and compliant.