Many employers let staff sell back unused annual leave for cash, or pay it out on leaving. The daily rate depends on the policy: some divide the monthly salary by 30 calendar days, others by 26 or 21.75 working days.
How to use the Selling Leave Days Calculator
- Basic pay per month
- Leave days to sell
- Daily-rate basis
- Tax rate on the payout
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter your basic pay per month, the leave days to sell and the divisor your employer uses.
Tips
- Tax figures here are estimates for planning – your actual tax depends on credits, deductions and local rules.
- Check the tax year and filing status before you rely on a result.
- Use gross (before-tax) figures unless a field asks for take-home pay.
- When in doubt, confirm with the tax authority’s own calculator or a tax professional.
Common mistakes to avoid
- Confusing marginal and effective tax rates.
- Adding sales tax to a price that already includes it.
- Forgetting payroll taxes (Social Security and Medicare) on wages.
Inputs explained
| Field | What to enter |
|---|---|
| Basic pay per month | Amount in your currency |
| Leave days to sell | A number |
| Daily-rate basis | Choose one: 21.75 working days (261 ÷ 12), 22 working days, 26 days, 30 calendar days |
| Tax rate on the payout | In % |
What each result means
- Daily rate = [Basic pay per month]÷[Daily-rate basis]
- Amount you can earn = [Daily rate]×[Leave days to sell]
- After tax = [Amount you can earn]×(1 – [Tax rate on the payout]÷100)
Example values
How the main result changes when Basic pay per month changes and everything else stays at the example values above:
| Basic pay per month | Amount you can earn |
|---|---|
| 2,000 | 919.54 |
| 3,000 | 1,379.31 |
| 4,000 | 1,839.08 |
| 5,000 | 2,298.85 |
| 6,000 | 2,758.62 |
| 8,000 | 3,678.16 |
Formula
Daily rate = basic monthly pay × 12 ÷ working days per year (or ÷ 30, 26 or 21.75)Amount = daily rate × leave days soldWorked example
Inputs — Basic pay per month: $4,000; Leave days to sell: 10; Daily-rate basis: 21.75 working days (261 ÷ 12); Tax rate on the payout: 20 %.
Results — Daily rate = $183.91; Amount you can earn = $1,839.08; After tax = $1,471.26.
Frequently asked questions
How is leave encashment calculated?
Daily rate × unused leave days.
Which divisor should I use?
Check your contract or HR policy – 21.75, 26 and 30 are common.
Is leave encashment taxed?
Usually yes, as ordinary income.
What formula does the Selling Leave Days Calculator use?
Daily rate = basic monthly pay × 12 ÷ working days per year (or ÷ 30, 26 or 21.75).