Follow the annual-to-daily unit path
| Step | Formula | Purpose |
|---|---|---|
| Annual hours | Weekly hours × paid weeks | Defines the entered paid schedule |
| Hourly pay | Annual pay ÷ annual hours | Converts annual gross pay to an hourly basis |
| Hours per day | Weekly hours ÷ workdays | Defines an average entered workday |
| Daily pay | Hourly pay × hours per day | Creates the gross daily equivalent |
| Leave value | Daily pay × paid leave days | Values only the entered paid days |
Use schedule and comparison inputs deliberately
Weekly hours, workdays and paid weeks define the conversion basis. Paid-time-off days produce the current leave value; extra days and a proposed raise create a separate comparison.
For an irregular schedule, use a representative average day and treat the result as an approximation rather than changing legal or employer definitions.
Worked example: five extra days versus a raise
| Measure | Calculation | Result |
|---|---|---|
| Annual hours | 40 × 52 | 2,080 hours |
| Hourly and daily pay | 78,000 ÷ 2,080; then × 8 | 37.50 per hour; 300 per day |
| Current PTO value | 300 × 20 days | 6,000 |
| Extra leave value | 300 × 5 days | 1,500 |
| Raise less extra leave | 3,000 − 1,500 | 1,500 |
Separate gross equivalence from the real leave decision
- Consider workload and whether the extra leave can realistically be used.
- Use a representative day when hours or shifts are irregular.
- Verify employer terms separately before relying on the comparison.
- Do not read the result as leave accrual, payout value or statutory entitlement.
- Compare personal time value separately from the gross-pay difference.
How the Paid Time Off Value Calculator calculation works
paidTimeOffValueAnnual = dailyPay × paidTimeOffDays
- paidTimeOffValueAnnual
- Annual paid time off value
- dailyPay
- Implied daily pay
- paidTimeOffDays
- Paid time off days
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
dailyPay = annualPay ÷ (workDaysPerWeek × paidWeeksPerYear)
- dailyPay
- Implied daily pay
- annualPay
- Annual pay
- weeklyHours
- Weekly hours
- workDaysPerWeek
- Workdays per week
- paidWeeksPerYear
- Paid weeks per year
- paidTimeOffDays
- Paid time off days
- extraPaidTimeOffDays
- Extra paid time off days
- proposedAnnualRaise
- Proposed annual raise
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
extraPaidTimeOffValueAnnual = dailyPay × extraPaidTimeOffDays
- extraPaidTimeOffValueAnnual
- Extra leave value
- annualPay
- Annual pay
- weeklyHours
- Weekly hours
- workDaysPerWeek
- Workdays per week
- paidWeeksPerYear
- Paid weeks per year
- paidTimeOffDays
- Paid time off days
- extraPaidTimeOffDays
- Extra paid time off days
- proposedAnnualRaise
- Proposed annual raise
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
proposedRaiseLessExtraPaidTimeOffValue = proposedAnnualRaise − extraPaidTimeOffValueAnnual
- proposedRaiseLessExtraPaidTimeOffValue
- Raise less extra leave value
- annualPay
- Annual pay
- weeklyHours
- Weekly hours
- workDaysPerWeek
- Workdays per week
- paidWeeksPerYear
- Paid weeks per year
- paidTimeOffDays
- Paid time off days
- extraPaidTimeOffDays
- Extra paid time off days
- proposedAnnualRaise
- Proposed annual raise
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
Annual pay of 78,000, 40 hours over five days and 20 paid leave days.
Inputs used in the Paid Time Off Value Calculator worked example
| Input | Entered value | What it represents | Source class |
|---|---|---|---|
| Annual pay | 78,000 currency units/year | Gross annual pay used to value working time. | user record |
| Weekly hours | 40 hours/week | Paid hours in a typical week. | user record |
| Workdays per week | 5 days/week | Paid workdays in a typical week. | user record |
| Paid weeks per year | 52 weeks/year | Paid weeks in the annual schedule. | user record |
| Paid time off days | 20 days/year | Paid leave days in the current package, visibly capped at scheduled annual workdays. | user record |
| Extra paid time off days | 5 days/year | Additional paid leave days, visibly capped at scheduled annual workdays. | user decision |
| Proposed annual raise | 3,000 currency units/year | Cash raise compared with extra leave value. | user decision |
Worked example: Paid Time Off Value Calculator
The calculator normalizes the inputs above, applies Paid time off value, and returns the outputs below. The displayed result is therefore reproducible in the linked calculator.
| Measure | Result | Interpretation |
|---|---|---|
| Annual paid time off value | 6,000 currency units/year | Daily pay multiplied by entered paid time off days. |
| Implied daily pay | 300 currency units/day | Annual pay converted through the entered weekly schedule. |
| Extra leave value | 1,500 currency units/year | Daily pay multiplied by additional leave days. |
| Raise less extra leave value | 1,500 currency units/year | Proposed annual raise minus extra leave value. |
Interpret the result and test Paid time off days
- Annual paid time off value: 6,000 currency units/year. Daily pay multiplied by entered paid time off days.
- Implied daily pay: 300 currency units/day. Annual pay converted through the entered weekly schedule.
- Extra leave value: 1,500 currency units/year. Daily pay multiplied by additional leave days.
- Raise less extra leave value: 1,500 currency units/year. Proposed annual raise minus extra leave value.
| Result | Baseline | Changed-input scenario | How to read it |
|---|---|---|---|
| Annual paid time off value | 6,000 currency units/year | 6,600 currency units/year | Daily pay multiplied by entered paid time off days. |
| Implied daily pay | 300 currency units/day | 300 currency units/day | Annual pay converted through the entered weekly schedule. |
| Extra leave value | 1,500 currency units/year | 1,500 currency units/year | Daily pay multiplied by additional leave days. |
| Raise less extra leave value | 1,500 currency units/year | 1,500 currency units/year | Proposed annual raise minus extra leave value. |
Checks that are specific to Paid Time Off Value Calculator
- Daily pay derives from the entered schedule.
- Leave days cannot exceed annual workdays.
- Extra leave value uses the same daily rate.
What this Paid Time Off Value Calculator guide includes and excludes
- Annual pay and weeks describe the paid schedule.
- Each workday has equal hours.
- Leave days are fully paid.
Sources and method boundary
- Paid Time Off Value Calculator methodology — Wage101 (accessed 2026-07-27): Canonical formulas, units, validation, calculator behavior and limitations.