How PTO accrual is calculated
PTO accrual means employees earn time off gradually instead of receiving their full allowance on day one. The math is the same whichever pay schedule you use:
- Per pay period: annual PTO hours ÷ pay periods per year
- Per hour worked: annual PTO hours ÷ hours worked per year (2,080 for a full-time, 40-hour week)
- Balance: carryover + PTO accrued so far − PTO used, limited by any cap
PTO accrual rates by pay schedule
Accrual per pay period for common annual allowances (8-hour workdays):
| Annual PTO | Weekly | Biweekly | Semi-monthly | Monthly |
|---|---|---|---|---|
| 10 days (80 hrs) | 1.54 hrs | 3.08 hrs | 3.33 hrs | 6.67 hrs |
| 15 days (120 hrs) | 2.31 hrs | 4.62 hrs | 5.00 hrs | 10.00 hrs |
| 20 days (160 hrs) | 3.08 hrs | 6.15 hrs | 6.67 hrs | 13.33 hrs |
| 25 days (200 hrs) | 3.85 hrs | 7.69 hrs | 8.33 hrs | 16.67 hrs |
Accrual or lump sum?
Not every team needs accrual. Many small teams grant PTO as a lump sum at the start of the year because it's simpler to run. If you're deciding between the two, read PTO accrual vs lump sum, or start from one of our free PTO policy templates.
Calculating accrual by hand every pay period gets error-prone fast, especially with tenure-based rates and carryover. That's what PTO tracking software is for: balances update automatically and everyone can see their own.
Frequently asked questions
How do you calculate PTO accrual?
Divide the annual PTO allowance by the number of accrual periods in a year. For example, 15 days (120 hours) of PTO accrued biweekly is 120 ÷ 26 = 4.62 hours per pay period. To get an hourly rate, divide annual PTO hours by hours worked per year: 120 ÷ 2,080 = 0.0577 hours of PTO per hour worked.
How many hours of PTO is 15 days?
With 8-hour workdays, 15 days of PTO is 120 hours. That works out to 10 hours per month, 4.62 hours per biweekly pay period, or about 2.31 hours per week.
What is a typical PTO accrual rate?
Many US employers offer 10–15 days of PTO per year for new employees, which is roughly 3.08–4.62 hours per biweekly paycheck. Rates often increase with tenure, for example 15 days for 0–2 years and 20 days after 3 years.
What is a PTO accrual cap?
A cap is the maximum balance an employee can hold. Once the balance reaches the cap, accrual pauses until PTO is used. Caps are often set at 1.5–2× the annual allowance to limit liability without a use-it-or-lose-it rule.
Is accrual better than giving all PTO up front?
Accrual limits the risk of an employee using all their PTO and then leaving, and spreads liability over the year. A lump sum is simpler and more generous. Many small teams use a lump sum, while larger companies tend to use accrual.