What is PTO rollover?

PTO rollover is the policy that allows employees to carry unused paid time off from one year to the next. Instead of losing unspent hours at year-end, they transfer to your next year's balance. Rollover policies vary: some allow full carryover, others cap the amount (e.g., max 40 hours), and some have use-it-or-lose-it rules.

How many PTO hours can I roll over?

It depends entirely on your employer's policy. Common rollover caps range from 40 to 80 hours (5-10 days). Some employers allow unlimited rollover but cap your total balance. Federal employees can carry over up to 240 hours (30 days). Check your employee handbook for your specific cap.

Is use-it-or-lose-it PTO legal?

It depends on the state. In California, Montana, and Nebraska, use-it-or-lose-it policies are illegal — employers cannot take away earned PTO. In most other states, use-it-or-lose-it is legal as long as the employer gives reasonable notice and the policy is clearly stated in writing. Even in states where it's legal, employers must follow their own written policy.

What happens to PTO I don't use by year-end?

Three possible outcomes: (1) It rolls over fully to next year (best case), (2) It rolls over up to a cap and the rest is forfeited, or (3) It's completely lost under a use-it-or-lose-it policy. Some employers offer a 'grace period' (e.g., use by March 31 of next year) or allow you to cash out excess hours.

Can my employer reduce my rolled-over PTO?

In states where PTO is considered earned wages (California, Colorado, Illinois, etc.), employers generally cannot retroactively reduce already-earned PTO. They can change future accrual rates or rollover caps going forward with notice, but they cannot claw back hours you've already accumulated.

Should I use PTO before year-end to avoid losing it?

If your employer has a rollover cap or use-it-or-lose-it policy, yes. Use this calculator to find exactly how many hours you need to take before December 31 to avoid forfeiture. For example, if you have 100 hours and your cap is 40, you should plan to use at least 60 hours before year-end.

PTO Rollover Calculator

Enter your current PTO balance and your employer's rollover policy to see how many hours carry over, what you'll lose, and how much to use before year-end.

Current PTO Balance*

hours

Your current available PTO hours

Next Year's Annual PTO

hours

PTO you'll earn next year

Rollover Policy

Your employer's year-end PTO policy

Rollover Cap*

hours

Maximum hours you can carry to next year

Planned Usage Before Year-End

hours

PTO you plan to use before the year ends

Hours Per Workday

hours

Used to convert hours to days

Results are estimates based on common PTO policies. Actual employer policies and state laws may differ. Full disclaimer.

How PTO rollover works

PTO rollover determines what happens to your unused paid time off at the end of a calendar year (or your employer's fiscal year). Understanding your rollover policy is critical for year-end planning — without it, you risk losing earned hours that could have been used for vacation or cashed out.

The rollover formula


Year-End Balance = Current Balance − Planned Usage Before Dec 31


Rollover Amount = min(Year-End Balance, Rollover Cap)


Hours Lost = Year-End Balance − Rollover Amount


Next Year Total = Rollover Amount + New Annual Allowance

Types of PTO rollover policies

1. Capped rollover (most common)

You can carry over unused PTO up to a specified limit. Any hours above the cap are forfeited. This is the most common policy, balancing flexibility for employees with liability control for employers.

Typical caps: 40-80 hours (1-2 weeks)
Example: You have 100 hours, cap is 40 → carry 40, lose 60

2. Full rollover

All unused PTO carries forward indefinitely. However, employers may still set a maximum total balance cap that pauses accrual (different from a rollover cap). Government and union positions often use this approach.

Federal employees: Up to 240 hours (30 days) carryover
Some tech companies: Unlimited carryover but 320-hour balance cap

3. Use-it-or-lose-it

All unused PTO is forfeited at year-end. No carryover. This policy is illegal in California, Montana, Nebraska, and Colorado (where PTO is treated as earned wages). Legal in most other states if clearly communicated.

Rollover policies by state legality

Policy Allowed?	States
Use-it-or-lose-it BANNED	California, Montana, Nebraska, Colorado
Allowed with notice/conditions	Most other states (must be in writing, reasonable notice)
Capped rollover always allowed	All states (since hours aren't forfeited, just limited)

Example calculation

An employee planning their year-end PTO strategy:

Current balance: 96 hours (12 days)
Rollover policy: Capped at 40 hours
Planned usage before Dec 31: 32 hours (4 days)
Next year's annual allowance: 120 hours

Results:

Year-end balance: 96 − 32 = 64 hours
Hours that roll over: min(64, 40) = 40 hours
Hours lost: 64 − 40 = 24 hours (3 days) forfeited
To avoid losing anything: use at least 96 − 40 = 56 hours before Dec 31
Next year starting balance: 40 hours
Next year projected total: 40 + 120 = 160 hours (20 days)

Tips to maximize your PTO rollover

Know your policy: Check your handbook for exact cap, deadline, and grace period
Plan early: Calculate in October/November how much you need to use
Ask about alternatives: Some employers allow excess PTO to be donated, cashed out, or used in January (grace period)
Track your accrual: Use our PTO Accrual Calculator to project your year-end balance
Consider payout: In states that require payout, you'll get the cash value anyway — use the PTO Payout Calculator to see what it's worth

When to use this calculator

Q4 planning: Determine how many days you must take before year-end
Job change timing: Decide whether to use PTO before leaving or collect payout
Comparing policies: Evaluate rollover terms when choosing between job offers
HR administration: Calculate rollover amounts for team members

For a complete view of your accrual over time, use our PTO Calculator. To understand how accrual caps interact with rollover, see our guide on PTO Accrual Caps.

Related Guides

PTO Accrual Caps Explained · How caps work and strategies to avoid losing hours.
Vacation Accrual Explained · Full breakdown of how PTO builds over time.
PTO Payout Explained · Know what your unused PTO is worth in dollars.

How much is your unused PTO worth?

Before year-end, calculate the dollar value of hours you'd lose.

PTO Payout Calculator →

PTO Rollover Calculator — FAQ

What is PTO rollover?: PTO rollover is the policy that allows employees to carry unused paid time off from one year to the next. Instead of losing unspent hours at year-end, they transfer to your next year's balance. Rollover policies vary: some allow full carryover, others cap the amount (e.g., max 40 hours), and some have use-it-or-lose-it rules.
How many PTO hours can I roll over?: It depends entirely on your employer's policy. Common rollover caps range from 40 to 80 hours (5-10 days). Some employers allow unlimited rollover but cap your total balance. Federal employees can carry over up to 240 hours (30 days). Check your employee handbook for your specific cap.
Is use-it-or-lose-it PTO legal?: It depends on the state. In California, Montana, and Nebraska, use-it-or-lose-it policies are illegal — employers cannot take away earned PTO. In most other states, use-it-or-lose-it is legal as long as the employer gives reasonable notice and the policy is clearly stated in writing. Even in states where it's legal, employers must follow their own written policy.
What happens to PTO I don't use by year-end?: Three possible outcomes: (1) It rolls over fully to next year (best case), (2) It rolls over up to a cap and the rest is forfeited, or (3) It's completely lost under a use-it-or-lose-it policy. Some employers offer a 'grace period' (e.g., use by March 31 of next year) or allow you to cash out excess hours.
Can my employer reduce my rolled-over PTO?: In states where PTO is considered earned wages (California, Colorado, Illinois, etc.), employers generally cannot retroactively reduce already-earned PTO. They can change future accrual rates or rollover caps going forward with notice, but they cannot claw back hours you've already accumulated.
Should I use PTO before year-end to avoid losing it?: If your employer has a rollover cap or use-it-or-lose-it policy, yes. Use this calculator to find exactly how many hours you need to take before December 31 to avoid forfeiture. For example, if you have 100 hours and your cap is 40, you should plan to use at least 60 hours before year-end.

Related Calculators

PTO Calculator · Calculate your total paid time off accrual based on your employer's policy, hours worked, and accrual rate.
PTO Accrual Calculator · Calculate how much PTO you earn per pay period and project your year-end balance with cap tracking.
Vacation Days Calculator · Track how many vacation days you've earned, used, and have remaining this year.