Terminal leave vs. sell-back calculator
Figure out the best use of your leave at separation: what selling it pays, what terminal leave is worth, whether you'd lose days to the 60-day cap, and roughly what your final paycheck will be.
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Sell back leave or take terminal leave?
When you separate with unused leave, you have three choices: use it before you out-process, sell it back, or take it as terminal leave at the very end of your service.
- Selling back pays 1/30 of your monthly basic pay per day, with no BAH, BAS, or special pays. It comes as a lump sum in your final pay. Enlisted members can also sell at reenlistment; officers only at separation. You must be separating under honorable conditions.
- Terminal leave means you stop working before your separation date and stay on active duty, so your full pay, allowances, and benefits continue until the end. Many people use it to start a civilian job early. Check your branch's rules before doing that.
The 60-day career cap
By law (37 U.S.C. 501) you can be paid for no more than 60 days of leave over your entire career, minus any days you sold before. Leave you cannot sell, and do not use, is lost. The calculator flags any days you would lose.
Which is worth more?
A day of terminal leave is “worth” more on paper because it includes allowances, but your pay runs through your separation date either way. The real trade is a lump sum of basic pay (selling) versus paid time off you can use to move, rest, or start a civilian paycheck while still being paid by the military (terminal leave). If you have a job lined up, terminal leave usually comes out ahead. If you need cash and have nowhere to be, selling may be better.
sold days = min(leave balance − terminal leave days + leave earned on terminal leave, 60 − days previously sold)
sold leave before tax = sold days × daily rate
federal withholding on sold leave ≈ 22% (IRS flat rate for supplemental wages)
Example from an Army finance brief: $3,746.30 ÷ 30 = $124.88 a day × 40 days = $4,995.07 before tax.
Final paycheck
Your final pay usually includes pay through your separation date, any sold leave, and separation pay if you qualify, minus debts, advances, and overpayments. Withholding on lump sums is often 22% federal plus state. The real tax is settled when you file. Leave earned in a combat zone may be excluded from federal tax.
Sources and data year
- 37 U.S.C. 501: Payments for unused accrued leave — 60-day career cap
- Military Compensation (DoD): Leave benefits during transition — sell back, terminal leave
- DFAS: Military pay tables — 2026 basic pay
- IRS Publication 15 (Circular E): supplemental wage withholding — 22% flat rate, 2026
- 10 U.S.C. 701: Entitlement and accumulation (2.5 days per month)
Frequently asked questions
How much do I get for selling back leave?
One day of leave sells for 1/30 of your monthly basic pay, before tax. BAH and BAS are not included.
What is the most leave I can sell back?
60 days over your whole career, minus any days you sold before (37 U.S.C. 501).
Do I keep getting BAH on terminal leave?
Yes. You are still on active duty during terminal leave, so your pay and allowances continue until your separation date.
Do I earn leave while on terminal leave?
Yes, leave keeps accruing at 2.5 days a month while you are on active duty, including terminal leave. That extra leave is usually sold or lost at separation.