Military Leave Payout Calculator
Estimate the cash value of selling back your unused military leave, or compare it directly to the value of taking terminal leave (including tax-free BAH and BAS allowances).
Sell Back Leave
Get paid a lump-sum for your basic pay only.
Take Terminal Leave
Keep full pay and allowances while transitioning.
⚓ Navy payouts are coordinated via NSIPS. Ensure your sell-back request is routed and approved by your command before final separation processing at the NPPSC.
Calculations are estimates. Leave sell-back is subject to federal supplemental tax withholding (22%) and FICA (7.65%). State tax exemptions vary by state of legal residence. BAH rates are based on your duty station ZIP code, rank, and dependency status. Consult your finance office (DFAS/CG-PSD) for official pay quotes.
Estimates only. PTO payout rights and tax withholding vary by state, employer policy, and individual circumstances. This is not legal, tax, or financial advice. Consult your state labor department or a qualified professional. See our methodology.
Military Leave Sell-Back Value Chart by Pay Grade (E-3 to O-3)
Below is a quick lookup chart based on the official 2026 military basic pay rates. The values represent gross payouts before federal supplemental tax withholding (22%) and FICA (7.65%) are applied.
| Pay Grade | Est. Monthly Pay | 10 Days Sold | 30 Days Sold | 60 Days Sold (Cap) |
|---|---|---|---|---|
| E-3 | $2,837.00 | $945.67 | $2,837.00 | $5,674.00 |
| E-4 (Over 4 Years) | $3,482.00 | $1,160.67 | $3,482.00 | $6,964.00 |
| E-5 (Over 6 Years) | $4,201.00 | $1,400.33 | $4,201.00 | $8,402.00 |
| E-6 (Over 6 Years) | $4,494.00 | $1,498.00 | $4,494.00 | $8,988.00 |
| O-1 (Under 2 Years) | $4,150.00 | $1,383.33 | $4,150.00 | $8,300.00 |
| O-2 (Over 2 Years) | $4,980.00 | $1,660.00 | $4,980.00 | $9,960.00 |
| O-3 (Over 2 Years) | $6,013.00 | $2,004.33 | $6,013.00 | $12,026.00 |
*Basic pay scales are based on DFAS 2026 active duty military pay tables. Actual basic pay depends on your exact years of service.
How Military Leave Sell-Back is Calculated
When you sell back leave in the military, the calculation is dictated by federal law (Title 37 U.S.C. Section 501). Each day of leave you sell is worth exactly 1/30 of your monthly basic pay.
It is important to know that **only basic pay** is used for this formula. Allowances like the Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), and special/hazard pays are completely excluded from a sell-back.
Additionally, leave sell-back is heavily taxed. The federal government treats it as a supplemental wage and applies a flat 22% federal tax withholding. You are also subject to standard 7.65% FICA taxes (6.2% Social Security + 1.45% Medicare). State tax depends on your state of legal residence. For more details on supplemental tax withholding, you can read our PTO Payout Tax Guide or check your local tax regulations on our State PTO Laws Directory.
Terminal Leave vs. Sell Back: The Tax & Accrual Advantages
When transitioning out of the military, you face a major decision: should you take terminal leave or sell your accrued leave back?
While selling back leave gets you a lump-sum payment, taking **Terminal Leave** is almost always the more financially rewarding choice due to two factors:
- Tax-Free Allowances (BAH and BAS): During terminal leave, you remain on active duty status until your separation date. This means you continue to receive your basic pay *plus* your BAH and BAS. Because BAH and BAS are 100% tax-free, this significantly increases your net take-home compensation compared to a basic-pay-only sell-back.
- BAH with Dependents: Housing allowance rates scale up significantly if you have dependents. In our calculator above, entering your "with-dependents" BAH rate highlights how much more value you preserve by remaining on active duty status on terminal leave compared to a sell-back.
- Continued Leave Accrual: Because you are on active duty while on terminal leave, you continue to accrue leave at the rate of 2.5 days per month. If you take 30 days of terminal leave, you earn an extra 2.5 days of leave, extending your pay period or enabling a mini sell-back at the end.
- Double Dipping: You can start a civilian job on Day 1 of your terminal leave. This allows you to collect your full military salary (including tax-free allowances) and your new civilian paycheck at the same time.
Worked Example: An E-5 (over 6 years) with 30 days of leave and a duty station in Norfolk, VA:
- Sell-Back Path: Pays basic pay only ($3,700 monthly basic pay ÷ 30 × 30 = $3,700 gross). After 22% federal withholding and 7.65% FICA, the net take-home is approximately **$2,600**.
- Terminal Leave Path: Pays basic pay ($3,700) + BAH with dependents ($1,950) + BAS ($460) = $6,110 gross compensation. Since BAH and BAS are tax-free, and only basic pay is taxed, the net take-home value is approximately **$5,300** — more than double the cash value of selling it back!
Are you a civilian employee looking to compute your standard vacation payout? Check out our main PTO Payout Calculator, calculate state and federal taxes with the PTO Payout Tax Calculator, or verify your state's legal requirements using our comprehensive State PTO Payout Laws Directory.
Military Leave Sell-Back Rules by Branch
While the payment formulas are standardized by the Department of Defense, the systems and procedures for requesting and approving leave sell-backs vary by service branch:
Navy Leave Sell-Back (NSIPS)
Navy personnel must request a sell-back during reenlistment or separation processing. The transaction is submitted via the Navy Standard Integrated Personnel System (NSIPS) and verified by your Command Career Counselor (CCC). The final payment is computed by the Navy Personnel and Pay Support Center (NPPSC).
Air Force & Space Force Leave (LeaveWeb)
Airmen and Guardians submit and track leave via LeaveWeb. To sell back leave, you will coordinate with your local Finance Service Office (FSO) during your out-processing appointment. FSO submits the authorized sell-back transaction to the Defense Finance and Accounting Service (DFAS).
Army Leave Sell-Back (IPPS-A)
Soldiers manage leave via the Integrated Personnel and Pay System - Army (IPPS-A). During SFL-TAP, work with your unit S1 to verify your accrued leave balance and submit your separation leave request. Any sold leave will be processed as part of your final separation pay.
Marine Corps (MOL) & Coast Guard (Direct Access)
Marines request sell-back through Marine Online (MOL) and coordinate with their IPAC. Coast Guard members use the Direct Access (DA) system, where their Servicing Personnel Office (SPO) processes the final out-processing and payout calculations.
Frequently Asked Questions
Is it better to sell back leave or take terminal leave? +
For almost all service members, taking terminal leave is financially superior to selling back leave. When you sell back leave, you receive only your basic pay (taxed heavily at 22% federal supplemental rates). When you take terminal leave, you remain on active duty status and continue to receive your full regular basic pay PLUS your tax-free Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS).
How many times can you sell back leave in the military? +
Under Department of Defense regulations, a military service member is entitled to sell back a career maximum of 60 days of accrued, unused leave. This cap applies across your entire military career, even if you switch branches or separate and reenlist years later.
Can National Guard and Reserve members sell back leave? +
Yes. National Guard and Reserve components serving on active duty operational support statuses or mobilized under federal orders can sell back accrued leave balances upon release from active duty, subject to the standard 60-day lifetime military career cap.
How much does the military pay you for your leave? +
When you sell back leave, the military pays you 1/30 of your monthly basic pay for each day of leave. This is paid as a lump sum. It does not include housing (BAH), food (BAS), or special pays.
How is leave payout calculated after taxes? +
Military leave payouts are taxed as supplemental wages. They are subject to a flat 22% federal supplemental withholding tax plus 7.65% FICA (Social Security and Medicare) withholding. Depending on your state of legal residence, state income taxes may also be withheld, though many states exempt military pay.
Does selling leave affect my High-3 retirement calculation? +
No. Selling back leave does not affect your High-3 retirement calculation or your monthly pension. The High-3 retirement pay is calculated using the average of your highest 36 months of basic pay received. Lump-sum payouts for sold leave are supplemental payments and are not factored into your High-3 average. However, taking terminal leave keeps you on active duty, which does count toward your total years of service for retirement credits.
How does BAH with dependents affect my terminal leave value? +
Basic Allowance for Housing (BAH) rates are higher for service members with dependents. If you take terminal leave, you receive your full BAH rate (with or without dependents) for the duration of the leave. Since BAH is 100% tax-free, service members with dependents stand to gain even more from terminal leave compared to selling leave back.
How do I sell back leave in the Navy? +
To sell back leave in the Navy, you must request it during your separation or reenlistment routing in the Navy Standard Integrated Personnel System (NSIPS). The transaction is verified by your Command Career Counselor (CCC) and processed by the NPPSC (Navy Personnel and Pay Support Center).
How do I sell back leave in the Air Force? +
Air Force and Space Force leave sell-backs are coordinated via LeaveWeb. Your finance office (FSO) will verify your terminal leave dates and process your sell-back request through DFAS.
How do I sell back leave in the Army? +
Army leave sell-backs are processed through the Integrated Personnel and Pay System - Army (IPPS-A). Verify your accrued leave balance with your unit S1 during your SFL-TAP out-processing.
Can I start a civilian job while on military terminal leave? +
Yes. Often called "double dipping," starting a civilian job while on terminal leave is generally allowed because you are transitioning out of active service. This allows you to collect both your military active-duty pay (including BAH and BAS) and your civilian salary simultaneously. Consult your command transition office or ethics counselor to verify compliance with conflict-of-interest regulations.