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Separation Toolkit

Terminal Leave vs Sell-Back Calculator

You're sitting on a leave balance at the end of your career and finance asks the question: take terminal leave, or sell it back? They're not the same dollar amount. Not even close.

The short answer

Taking terminal leave is almost always worth more than selling it back — you draw full pay plus tax-free BAH and BAS, while sell-back pays basic pay only and is capped at 60 days for your whole career.

The only catch: terminal leave needs calendar time before your separation or retirement date. Sell-back exists to monetize leave you physically can't burn before you're out.

Sell-back pays
Basic pay only
Terminal leave pays
Basic + BAH + BAS
Sell-back lifetime cap
60 days
Sell-back withholding
22% federal

Your numbers

Don't know yours? Look it up by ZIP and paygrade →

Leave you can't burn before your separation date can only be monetized by selling it back.

The comparison

Estimate · confirm every figure with your finance office

Take terminal leave
$5,765
full value over 30 days
Full daily pay: $192/day
= basic + BAH + BAS ÷ 30
BAH & BAS portion is tax-free
★ Worth more
Sell it back (net)
$2,730
after 22% withholding · 30 of 30 days sellable
Gross (basic ÷ 30 × days): $3,500
Daily basic only: $117/day
No BAH, no BAS, no special pay
Taking terminal leave nets you about
$3,035 more
Estimate only. This is planning math, not a finance determination. Sell-back uses a flat 22% federal supplemental withholding (your final tax liability may differ at filing) and ignores state tax. Terminal-leave value assumes you keep drawing your current basic + BAH + BAS for those days. Your actual numbers depend on your paygrade, ZIP, dependent status, and prior sell-back history. Confirm everything with your finance office before you sign anything.
What finance won't spell out
  1. Sell-back is the worse rate, on purpose. It pays basic pay only — no BAH, no BAS, no special or incentive pay — then takes 22% off the top. Terminal leave keeps your whole paycheck running, and the BAH/BAS slice of it is tax-free. Same days, very different money.
  2. The 60-day cap is for your whole career, not this separation. If you sold leave back at a prior ETS or reenlistment, those days already came out of your 60. Most people forget they ever did it. Check your records before you assume you have the full 60 left.
  3. The legal double-dip. Under 5 U.S.C. § 5534a, if you line up a federal or civil-service job, you can draw that civilian salary AND your military pay at the same time while you're on terminal leave. That can make taking leave dramatically better than selling it — you're paid twice for the same days, legally.
  4. Terminal leave needs runway. The only reason sell-back ever wins is time. If your separation date is locked and you can't burn the days, selling caps you at 60 and basic-pay-only — but it beats forfeiting the leave entirely. Plan your terminal leave dates early.

Common questions

Should I sell my leave or take terminal leave?
Taking terminal leave is usually worth more money. On terminal leave you stay on active duty and keep drawing your full paycheck — basic pay plus BAH and BAS, and the BAH/BAS portion is tax-free. Selling leave back pays basic pay only and is hit with 22% federal withholding. The math almost always favors taking the leave; the only reason to sell is when you physically cannot burn the days before your separation or retirement date.
How is military leave sell-back calculated?
Sell-back value is your monthly basic pay divided by 30, multiplied by the number of days you sell. It is basic pay only — BAH, BAS, and special or incentive pays are not included. The gross amount is then subject to 22% federal supplemental withholding. So a service member with $3,600 monthly basic pay sells each day at $120 gross, roughly $94 after withholding.
What is the lifetime cap on selling back leave?
You can sell back a maximum of 60 days of leave across your entire career — not 60 days per separation. Any days you sold at a prior ETS or reenlistment already count against that 60. Taking terminal leave has no equivalent cap, which is another reason taking leave usually beats selling it.
Can I work a civilian job during terminal leave?
Yes. You remain on active duty and keep your military pay during terminal leave, and under 5 U.S.C. § 5534a you may also receive a federal civil-service salary concurrently if you start a federal job. That legal "double dip" — drawing both paychecks for the same days — can make taking terminal leave dramatically more valuable than selling it back.
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Official Sources

Published by the Honest MOS Editorial DeskVerified against DoD/.gov sourcesUpdated May 2026Editorial standards