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Methodology

Leave Buy or Sell Calculator methodology

Compare buying and selling leave using only the user-entered arrangement terms.
Duc Nguyen X.By Duc Nguyen X.· Founder, Wage101Last reviewed: View update historyMethodology

Educational only: Work and pay decision support, not tax, legal, financial or career advice.

Privacy: Calculations run locally; Wage101 does not receive your work or pay inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral work and pay planning using your own assumptions.

1. Formulas and units

Buy versus sell spread
buyVsSellSpread = buyCost − sellNetProceeds

Where

buyVsSellSpread
Buy cost minus net sale proceeds (currency units)Source: Calculated output
buyCost
Leave buy cost (currency units)Source: Calculated output
sellNetProceeds
Net sale proceeds (currency units)Source: Calculated output
Leave value
leaveValue = annualSalary ÷ workDaysPerYear × leaveDays

Where

annualSalary
Annual salary (currency units/year)Source: User assumption
workDaysPerYear
Workdays per year (days/year)Source: User assumption
leaveDays
Leave days (days)Source: User assumption
leaveValue
Straight-time leave value (currency units)Source: Calculated output
Buy cost
buyCost = leaveValue × buyMultiplier

Where

buyMultiplier
Buy multiplier (multiplier)Source: User assumption
leaveValue
Straight-time leave value (currency units)Source: Calculated output
buyCost
Leave buy cost (currency units)Source: Calculated output
Gross sale proceeds
sellGrossProceeds = leaveValue × sellMultiplier

Where

sellMultiplier
Sell multiplier (multiplier)Source: User assumption
leaveValue
Straight-time leave value (currency units)Source: Calculated output
sellGrossProceeds
Gross sale proceeds (currency units)Source: Calculated output
Net sale proceeds
sellNetProceeds = sellGrossProceeds × (1 − sellDeductionRate)

Where

sellDeductionRate
Sell deduction rate (share of gross proceeds)Source: User assumption
sellGrossProceeds
Gross sale proceeds (currency units)Source: Calculated output
sellNetProceeds
Net sale proceeds (currency units)Source: Calculated output

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Pay, time, benefits and work-related costs use the units stated beside each input.

2. Worked example

Input assumptions

Compare buying and selling five days from 65,000 salary over 260 workdays.

Calculation and outputs

Example

Compare buying and selling five days from 65,000 salary over 260 workdays.

Buy cost minus net sale proceeds
450.00 currency units
Straight-time leave value
1,250.00 currency units
Leave buy cost
1,250.00 currency units
Gross sale proceeds
1,000.00 currency units
Net sale proceeds
800.00 currency units

Straight-time value, buy cost and gross and net sale proceeds remain visible.

Interpretation

Compare cash amounts while keeping the personal value of leave separate.

3. Validation and boundary checks

  • 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.

4. Assumptions and source classification

  • 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.

This calculator has no current policy-data dependency. Its work and pay assumptions are user supplied. Registered family-level regression suites exercise the shared work-logic engine and worked-result reconciliation.

5. Limitations

  • No statutory leave, employer eligibility, payroll or tax rule is applied.
  • Cash value does not measure the personal value of time off.
  • The tool does not say whether buying or selling is permitted.

This is educational decision support, not personalised tax, legal, financial or career advice. Check the treatment of your circumstances under the rules that apply to you and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this calculator. Work and pay inputs remain user-supplied because they vary by person, job and contract.

Change history

  1. : Initial public release of the Leave Buy or Sell planner and methodology.

Related reading

Use these practical guides to interpret the decision and its assumptions.

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