Selling Military Leave vs Terminal Leave: What 30 Days Is Worth
When you separate or retire, accrued leave is money. You can sell it back for cash or burn it as terminal leave — and for most people, terminal leave is worth noticeably more. Here's the math.
What a day of leave is worth
Selling leave pays 1 day of basic pay per day of leave — basic pay only, no BAH or BAS. For a 2026 E-5 with 6 years ($4,110/month basic):
| Leave sold | Cash (basic pay only, taxable) |
|---|---|
| 1 day | $137 |
| 10 days | $1,370 |
| 30 days | $4,110 |
| 60 days (career cap) | $8,220 |
Why terminal leave usually wins
On terminal leave, you stay on active duty and keep drawing your full paycheck — basic pay plus tax-free BAH and BAS — while you're already done working (often job-hunting or starting a civilian job). Selling leave only pays the basic-pay portion. For our E-5 with BAH, 30 days of terminal leave is worth hundreds more than selling the same 30 days, because you keep the allowances.
The rules and limits
- 60-day career cap on selling leave (war-time exceptions aside) — sell beyond that and it's lost.
- Sold leave is taxable (22% withholding); terminal-leave allowances stay tax-free.
- You can combine: take terminal leave and sell whatever you can't burn before your separation date.
- Don't lose leave to use/lose each October — see how to read your LES.
Know your basic pay — it sets exactly what each leave day is worth.
Calculate my pay →Frequently asked questions
How much is military leave worth?
Selling leave pays one day of basic pay per day of leave (basic pay only). For a 2026 E-5 with 6 years, 30 days is about $4,110, before taxes.
Is it better to sell leave or take terminal leave?
Terminal leave usually wins — you keep drawing full pay including tax-free BAH and BAS while on leave, whereas selling leave pays only the basic-pay portion.
How many days of leave can I sell?
Up to 60 days over a career (outside special wartime authorities); leave sold is taxed at the 22% supplemental rate.