Translate the arrangement into explicit inputs
The annual salary and entered workdays create the daily-rate basis. The leave days set the quantity being compared, while separate buy and sell multipliers preserve potentially different arrangement terms.
The sale-deduction share is another assumption you supply. The Global calculator does not select a denominator, multiplier, tax treatment or scheme for you.
| Term | Calculation role | What to verify independently |
|---|---|---|
| Annual salary | Numerator of the daily rate | Which pay elements the arrangement includes. |
| Workdays per year | Denominator of the daily rate | The denominator specified by the arrangement. |
| Leave days | Quantity valued in both scenarios | Whether the entered amount is permitted and available. |
| Buy and sell multipliers | Adjust the base leave value separately | The exact terms for buying and selling. |
| Sale deduction rate | Reduces gross sale proceeds | The applicable payroll or deduction assumption. |
Calculate the default five-day comparison
The fixture uses 65,000 annual salary, 260 workdays, five leave days, a 1.0 buy multiplier, a 0.8 sell multiplier and a 20% entered sale deduction.
| Step | Calculation | Result | Meaning |
|---|---|---|---|
| Daily rate | 65,000 ÷ 260 | 250/day | The daily salary basis created by the entered denominator. |
| Leave value | 250 × 5 | 1,250 | The unadjusted value of the five entered days. |
| Buy cost | 1,250 × 1.0 | 1,250 | Cash cost under the entered buy multiplier. |
| Gross sale proceeds | 1,250 × 0.8 | 1,000 | Sale amount before the entered deduction. |
| Net sale proceeds | 1,000 × (1 − 20%) | 800 | Sale amount after the user-entered deduction share. |
| Buy-versus-sell spread | 1,250 − 800 | 450 | Difference between two cash scenarios, not the value of time off. |
Separate the cash comparison from the value of time off
The spread does not show that buying leave is expensive or selling leave is attractive. It only compares the two entered cash treatments. Rest, caring responsibilities, travel and flexibility are personal considerations outside the arithmetic.
A different workday denominator, multiplier or deduction can materially change the result, so do not substitute a commonly used value for the terms of your own arrangement.
Choose between buying, selling and keeping leave
- Verify which actions and leave amounts are permitted, including caps, deadlines and approval requirements.
- Record the source and date for the salary basis, workday denominator, multipliers and deduction assumption.
- Write down the cash need and timing that the transaction is intended to address.
- Check the leave balance that would remain and the time away you expect to need.
- Keep rest, caring, travel and flexibility priorities beside the cash result instead of pricing them into the spread.
- Mark payroll or tax treatment as unknown or scenario until the applicable source confirms it.
- Recalculate with changed days, multipliers or deductions.
How the Leave Buy or Sell Calculator calculation works
buyVsSellSpread = buyCost − sellNetProceeds
- buyVsSellSpread
- Buy cost minus net sale proceeds
- buyCost
- Leave buy cost
- sellNetProceeds
- Net sale proceeds
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
leaveValue = annualSalary ÷ workDaysPerYear × leaveDays
- leaveValue
- Straight-time leave value
- annualSalary
- Annual salary
- workDaysPerYear
- Workdays per year
- leaveDays
- Leave days
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
buyCost = leaveValue × buyMultiplier
- buyCost
- Leave buy cost
- leaveValue
- Straight-time leave value
- buyMultiplier
- Buy multiplier
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
sellGrossProceeds = leaveValue × sellMultiplier
- sellGrossProceeds
- Gross sale proceeds
- leaveValue
- Straight-time leave value
- sellMultiplier
- Sell multiplier
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
sellNetProceeds = sellGrossProceeds × (1 − sellDeductionRate)
- sellNetProceeds
- Net sale proceeds
- sellGrossProceeds
- Gross sale proceeds
- sellDeductionRate
- Sell deduction rate
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
Compare buying and selling five days from 65,000 salary over 260 workdays.
Inputs used in the Leave Buy or Sell Calculator worked example
| Input | Entered value | What it represents | Source class |
|---|---|---|---|
| Annual salary | 65,000 currency units/year | Annual gross salary used to calculate a daily rate. | user assumption |
| Workdays per year | 260 days/year | Whole workdays used for the daily-rate denominator. | user assumption |
| Leave days | 5 days | Leave days being bought or sold. | user assumption |
| Buy multiplier | 1 multiplier | Your entered multiplier applied when buying leave. | user assumption |
| Sell multiplier | 0.8 multiplier | Your entered multiplier applied to gross sale proceeds. | user assumption |
| Sell deduction rate | 0.2 share of gross proceeds | Your entered deduction assumption as a decimal share. | user assumption |
Worked example: Leave Buy or Sell Calculator
The calculator normalizes the inputs above, applies Buy versus sell spread, and returns the outputs below. The displayed result is therefore reproducible in the linked calculator.
| Measure | Result | Interpretation |
|---|---|---|
| Buy cost minus net sale proceeds | 450 currency units | Entered buy cost less sale proceeds after the entered deduction rate. |
| Straight-time leave value | 1,250 currency units | Daily gross salary rate times entered leave days. |
| Leave buy cost | 1,250 currency units | Straight-time leave value times the entered buy multiplier. |
| Gross sale proceeds | 1,000 currency units | Straight-time leave value times the entered sell multiplier. |
| Net sale proceeds | 800 currency units | Gross sale proceeds after the entered deduction rate. |
Interpret the result and test Leave days
- Buy cost minus net sale proceeds: 450 currency units. Entered buy cost less sale proceeds after the entered deduction rate.
- Straight-time leave value: 1,250 currency units. Daily gross salary rate times entered leave days.
- Leave buy cost: 1,250 currency units. Straight-time leave value times the entered buy multiplier.
- Gross sale proceeds: 1,000 currency units. Straight-time leave value times the entered sell multiplier.
- Net sale proceeds: 800 currency units. Gross sale proceeds after the entered deduction rate.
| Result | Baseline | Changed-input scenario | How to read it |
|---|---|---|---|
| Buy cost minus net sale proceeds | 450 currency units | 495 currency units | Entered buy cost less sale proceeds after the entered deduction rate. |
| Straight-time leave value | 1,250 currency units | 1,375 currency units | Daily gross salary rate times entered leave days. |
| Leave buy cost | 1,250 currency units | 1,375 currency units | Straight-time leave value times the entered buy multiplier. |
| Gross sale proceeds | 1,000 currency units | 1,100 currency units | Straight-time leave value times the entered sell multiplier. |
| Net sale proceeds | 800 currency units | 880 currency units | Gross sale proceeds after the entered deduction rate. |
Checks that are specific to Leave Buy or Sell Calculator
- Workdays per year is a whole number from 1 to 366.
- Multipliers are between 0 and 10.
- The entered deduction rate stays between 0 and 1 in this UI.
What this Leave Buy or Sell Calculator guide includes and excludes
- Annual salary and workdays form the chosen daily-rate basis.
- Buy and sell factors come from the user’s arrangement.
- The entered deduction is a scenario assumption.
Sources and method boundary
- Leave Buy or Sell Calculator methodology — Wage101 (accessed 2026-07-27): Canonical formulas, units, validation, calculator behavior and limitations.