Start with the ending balance
Calculate the balance before carryover by combining the opening balance, accrual, adjustments and usage. Keep negative balances visible where the policy permits them instead of silently forcing every ledger value to zero.
Apply caps and carryover limits separately
A balance cap limits how much can accumulate during the year. A carryover limit controls how much of the ending balance moves into the next period. They are different policy rules and should not be merged.
Treat payout as another independent rule
Payout eligibility may apply to all, some or none of the hours not carried. Use a user-entered payout percentage and hourly rate only as a planning estimate.
Confirm current policy and law
Carryover, forfeiture and payout requirements vary by employer and jurisdiction. A calculator cannot determine entitlement or whether a policy is lawful.