The Real Value of PTO: How Much Are Your Vacation Days Worth?
When comparing job offers, most people zoom straight to salary. But here’s the truth: paid time off (PTO) has real monetary value, and ignoring it could cause you to underestimate one offer by thousands of dollars.
On Reddit, one of the most common questions is:
- “Should I take the higher salary with fewer vacation days, or the lower salary with more PTO?”
The answer lies in understanding how to translate PTO into dollars. In this post, we’ll show you how.
Why PTO Matters
PTO is essentially paid vacation. When you take time off, your company keeps paying your salary. That means PTO days have a direct cash value.
More PTO = more paid days off = higher effective compensation.
How to Calculate the Value of PTO
Here’s the simple formula:
Daily Pay = Annual Salary ÷ Number of Workdays per Year (usually ~260)
PTO Value = Daily Pay × PTO Days
Example: 15 Days vs 20 Days
-
Salary: $100,000
-
Daily Rate: ~$385
-
15 PTO days: $5,775 value
-
20 PTO days: $7,700 value
That’s a difference of $1,925 per year, nearly a $2,000 differenece for the extra 5 days!
Comparing PTO Across Job Offers
Offer A: $100,000 salary, 15 PTO days
- Daily Rate: ~$385
- PTO value: $5,775
- Total = $105,775
Offer B: $95,000 salary, 25 PTO days
- Daily Rate: ~$365
- PTO value: $9,125
- Total = $104,125
Even though Offer A pays more in salary, Offer B comes close in value once you factor in PTO.
Beyond the Math: Lifestyle Value
While PTO has a dollar value, it also impacts:
- Work-Life Balance: More days off mean more rest, family time, travel.
- Health & Burnout Prevention: Time off is critical for long-term performance.
- Flexibility: More PTO gives you more control over your schedule.
Sometimes, the intangible value of PTO outweighs a slight salary difference.
Negotiating PTO
If salary isn’t flexible, PTO often is. You can say:
“I’m excited about the offer. If salary is set, would you be open to adding an extra week of PTO?”
This can be an easy win for both sides. For a complete guide on how to negotiate check out our guide How to negotiate.
Common Mistakes
- Ignoring PTO completely when comparing offers.
- Assuming all PTO is equal (some companies require it to cover sick days too).
- Forgetting to value rollover policies (unused PTO might expire or convert to cash).
Final Thoughts
PTO is not just a perk, it’s part of your paycheck. Each vacation day is worth real money!
When comparing job offers, always factor in:
- Salary
- PTO value
- Health insurance
- Retirement contributions
- Other perks
Only then can you see the true picture. Doing the math by hand for salary, benefits, PTO, and insurance can be a headache. JobForager makes it easy: just enter your offers and instantly see the true total compensation, including PTO value.
Happy job hunting,
The JobForager Team