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Soldiers time terminal leave so it runs right up to their ETS date while still drawing full pay and benefits. Figure out how much of your accrued leave to take as terminal leave versus sell back (up to the 60-day career cap), timed to your Expiration of Term of Service (ETS).
Calculate whether taking terminal leave or selling it back gives you more value
Typically 1-60 days
Leave blank if not receiving BAH
Benefits:
Considerations:
Take Terminal Leave
Taking terminal leave provides approximately $1,905 more in total value, primarily from extended TRICARE coverage and BAH (if eligible).
Your full breakdown — including the ~$1,905 difference between taking leave and selling it back — sent to your inbox, so you have your numbers when you actually submit. Free, unsubscribe in one click.
Family health insurance on the civilian market costs $800-1,500/month. TRICARE continuation during terminal leave can save thousands, especially if you have ongoing treatments or prescriptions.
Lump sum payments are taxed at a higher rate (25-30%) because they count as income in a single tax year. Taking terminal leave spreads the income over 2 months, potentially resulting in lower overall tax liability.
Terminal leave provides time to move your household goods, find housing, and get your family settled before starting a new job. Selling leave means you need to manage relocation while starting work immediately.
The transition from military to civilian life is significant. Terminal leave provides decompression time to mentally prepare for the next chapter without the immediate pressure of a new job.
The leave rules are DoD-wide, so the math is the same for every branch, but you time it to your Expiration of Term of Service (ETS). During terminal leave you remain on active duty and draw full pay and benefits, so many Army members job-hunt, move, or even start a civilian job before their ETS date. Coordinate the dates with your S1/HR shop and the transition (SFL-TAP) office as you clear.
The alternative is selling unused leave for a lump sum. Sold-back leave pays base pay only (no BAH or BAS) and is capped at 60 days over your whole career. Taking leave is usually worth more per day, which is why the calculator above helps you find the split.
Want the full breakdown and options? See the main Terminal Leave Calculator guide.