PTO rollover calculator.
See how much PTO you can carry over, how much you'd forfeit to a cap, and the cash value of the time at risk.
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.
PTO Carryover Rules & Carryover Caps
If your accumulated paid time off exceeds your employer's year-end limits, the excess hours are typically forfeited under a "use-it-or-lose-it" policy unless you can arrange a cash-out. This **pto rollover calculator** (or **pto carryover calculator**) splits your current PTO balance into hours that safely roll over into the new year and hours at risk of forfeiture. Understanding **pto carryover rules** and your company's specific **pto carryover cap** allows you to plan your time off effectively and estimate the net cash value of any hours at risk before the annual deadline.
In states that classify accrued vacation as vested wages, employers cannot erase the time you have already earned. Check your specific rights in our state-by-state PTO payout law guide. To find your exact current balance, use the PTO Accrual Calculator. To value a direct voluntary cash-out, use the PTO cash-out calculator, or see the complete tax impact on the main PTO Payout Calculator.
Accrual Caps vs. Carryover Caps: What is the difference?
Many employees use the word "cap" interchangeably, but labor departments and courts draw a sharp distinction between two methods of limiting PTO:
- Carryover Cap (Year-End Cap): This limits the number of hours an employee can transfer from one calendar or benefit year to the next. If you exceed the carryover cap at the end of the year, excess hours are forfeited (where legal) or forced to cash out.
- Accrual Cap (Balance Cap): This limits the maximum balance you are permitted to hold in your bank at any single point in time. Once your balance hits this cap, you temporarily stop earning new PTO hours. When you take time off and your balance falls below the cap, accrual resumes automatically.
Strict State Laws: California & Colorado
In states like California and Colorado, accrued paid vacation is legally protected as a form of earned wages. Because wages cannot be retroactively reduced or forfeited, "use-it-or-lose-it" carryover caps are strictly illegal in these jurisdictions.
However, employers in these states are allowed to manage their liabilities using accrual caps. Since a cap on future accrual simply stops you from earning new wages rather than taking away wages you've already earned, courts have ruled that accrual caps are legal, provided they are reasonable:
State-Specific Regulatory Baselines:
- California: The Division of Labor Standards Enforcement (DLSE) historically considers an accrual cap reasonable if it is at least 1.5 to 2 times the employee's annual accrual rate (e.g., if you earn 80 hours a year, a reasonable cap must be at least 120 or 160 hours).
- Colorado: The Colorado Wage Act protects accrued vacation at separation. Accrual caps are allowed as a limit on bank size, but once vacation is accrued, it cannot be forfeited under any agreement or policy.
What options do you have for at-risk PTO?
If you work in a state that permits "use-it-or-lose-it" policies and you are approaching the cap, you generally have three options: request leave to use the hours before the deadline, request a cash-out if your company policy permits voluntary buybacks, or forfeit the hours. If your company is transitioning its PTO policies mid-year, employers can model fair transition grants and evaluate their changeover options using the PTO Policy Transition Calculator.
Frequently asked questions
What is a PTO carryover cap? +
A carryover cap is the maximum number of unused PTO hours your employer lets you roll into the next year. Hours above the cap are forfeited unless your policy or state law lets you cash them out.
Is use-it-or-lose-it PTO legal? +
It depends on your state. States like California, Colorado, and Massachusetts treat accrued vacation as earned wages that cannot be forfeited, so caps cannot erase earned time. Many other states allow use-it-or-lose-it if clearly communicated in advance.
Should I roll over or cash out my PTO? +
If your hours exceed the carryover cap, the excess is at risk. Cashing out the excess converts it to taxable cash now; rolling over keeps it as future time off where allowed. Compare the net cash value of the forfeited hours against keeping the time.