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How the Terminal Leave Payout Is Calculated
To price each day of leave, the calculation converts your monthly basic pay using the Defense Finance and Accounting Service (DFAS) standard basic-pay-divided-by-30 daily rate. Taking terminal leave keeps you in normal active-duty status, continuing your basic pay, authorized Basic Allowance for Housing (BAH), and regular federal tax and Federal Insurance Contributions Act (FICA) withholdings.
Selling leave back pays a lump sum without FICA deductions, though DFAS applies the flat 22% supplemental rate set by the Internal Revenue Service (IRS) in IRS Publication 15. For career limits and carryover rules, see the full terminal leave guide.
Frequently Asked Questions
Is this calculation my exact terminal leave or sell-back payout?
This tool provides an estimate for planning purposes. It does not replace an official military pay calculation, because it cannot access the basic pay rate, BAH, tax bracket, or state tax withholdings on your Leave and Earnings Statement (LES). You should verify your official final payout amounts directly with your installation finance office.
How many days of leave can I sell back?
A service member can sell back a maximum of 60 days of leave over an entire military career. Standard military leave accrues at 2.5 days per month, or 30 days per year, with a normal fiscal year carryover cap of 60 days. Any unused leave days that exceed the 60-day career limit cannot be sold back for cash.