Hourly PTO formula

PTO Accrual Based on Hours Worked

For an hourly accrual policy, multiply hours worked by the PTO earned for each hour. This page shows the formula and examples for common work-hour totals.

Per-hour PTO accrual formula

PTO earned = hours worked × PTO accrual rate

If the rate is 0.05 PTO hours for every hour worked, 80 work hours earn 4 PTO hours, 160 work hours earn 8 PTO hours, and 2,080 work hours earn 104 PTO hours before policy limits or adjustments.

Example: 80 hours worked

80 × 0.05 = 4 PTO hours

Example: 160 hours worked

160 × 0.05 = 8 PTO hours

How to include an existing balance

Add the newly earned PTO to the current balance and eligible carryover, then subtract PTO used. If the policy has a balance cap, apply that cap to the projected balance.

What rate should you use?

Use the accrual rate stated in the applicable employer or plan policy. This guide explains the arithmetic only and does not determine eligibility, legal requirements, forfeiture rules, or the correct policy rate.

Use the PTO Accrual Calculator to enter an hourly rate, hours worked, carryover, usage and a balance cap.

Frequently asked questions

How much PTO do I earn per hour worked?

Multiply each hour worked by the accrual rate supplied by the applicable PTO policy.

Can I calculate vacation accrual the same way?

Yes, when the vacation policy uses a per-hour accrual rate, the arithmetic is the same.