Methodology
Paid Time Off Value Calculator methodology
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
paidTimeOffValueAnnual = dailyPay × paidTimeOffDaysWhere
- paidTimeOffDays
- Paid time off days (days/year)Source: Work record
- paidTimeOffValueAnnual
- Annual paid time off value (currency units/year)Source: Calculated output
- dailyPay
- Implied daily pay (currency units/day)Source: Calculated output
dailyPay = annualPay ÷ (workDaysPerWeek × paidWeeksPerYear)Where
- annualPay
- Annual pay (currency units/year)Source: Work record
- workDaysPerWeek
- Workdays per week (days/week)Source: Work record
- paidWeeksPerYear
- Paid weeks per year (weeks/year)Source: Work record
- dailyPay
- Implied daily pay (currency units/day)Source: Calculated output
extraPaidTimeOffValueAnnual = dailyPay × extraPaidTimeOffDaysWhere
- extraPaidTimeOffDays
- Extra paid time off days (days/year)Source: User decision
- extraPaidTimeOffValueAnnual
- Extra leave value (currency units/year)Source: Calculated output
proposedRaiseLessExtraPaidTimeOffValue = proposedAnnualRaise − extraPaidTimeOffValueAnnualWhere
- proposedAnnualRaise
- Proposed annual raise (currency units/year)Source: User decision
- proposedRaiseLessExtraPaidTimeOffValue
- Raise less extra leave value (currency units/year)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
Annual pay of 78,000, 40 hours over five days and 20 paid leave days.
Calculation and outputs
Example
Annual pay of 78,000, 40 hours over five days and 20 paid leave days.
- Annual paid time off value
- 6,000.00 currency units
- Implied daily pay
- 300.00 currency units
- Extra leave value
- 1,500.00 currency units
- Raise less extra leave value
- 1,500.00 currency units
Paid leave and a proposed raise are compared on one gross daily-pay basis.
Interpretation
Use leave value as a gross-pay equivalence, not as a measure of personal utility.
3. Validation and boundary checks
- Daily pay derives from the entered schedule.
- Leave days cannot exceed annual workdays.
- Extra leave value uses the same daily rate.
4. Assumptions and source classification
- Annual pay and weeks describe the paid schedule.
- Each workday has equal hours.
- Leave days are fully paid.
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
- The tool does not apply statutory leave rules.
- Leave utility is not the same as gross pay value.
- Irregular schedules need an average day.
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
- : Initial public release of the Paid Time Off Value planner and methodology.
Related reading
Use these practical guides to interpret the decision and its assumptions.
- How to use the Paid Time off Value calculator
Translate entered paid leave days into gross pay value using the stated annual schedule.
Read guide