Your Last Paycheck: Leave Sell-Back, Final Pay, and the Money on the Way Out
Getting out comes with a last round of money: your final pay, the leave you can cash in, and a few entitlements that settle on the way out. Here is how to make sure you get all of it.
The bottom line up front
- 1.Terminal leave pays your full pay and allowances; selling leave pays base pay only, so terminal leave is usually worth more per day.
- 2.You can sell a maximum of 60 days of leave across your entire career, a lifetime cap, not per-event.
- 3.Terminal leave can let you start a civilian job and second paycheck while still drawing military pay.
- 4.Final pay settles prorated pay and allowances, any leave sell-back, and for enlisted a prorated clothing allowance.
- 5.Confirm everything on your last LESs before your access ends, because pay errors are hard to fix after you separate.
Leaving the military comes with a final round of money, and it is the kind of thing you only do once or twice, so it is easy to leave dollars on the table. Between your last paycheck, the leave you have saved up, and a few entitlements that settle on the way out, there is real money in play. Knowing how it works ahead of time is how you make sure all of it actually lands.
The big decision: sell leave or take terminal leave
If you have unused leave saved up when you separate, you have a choice to make, and it is worth understanding because the two options are not worth the same amount.
- Selling leave (lump-sum). You can cash in unused leave for a lump-sum payment. The catch: sold leave is paid at your base pay rate only, with no BAH or BAS attached to it. There is also a lifetime cap of 60 days of leave you are allowed to sell across your whole career.
- Taking terminal leave. Instead of selling, you take the leave as actual time off at the end of your service. While you are on terminal leave you keep your full pay and allowances, including BAH and BAS, right up to your separation date.
Because terminal leave pays your full allowances and selling leave does not, terminal leave is usually worth more per day, especially if you draw significant BAH. The common play is to take terminal leave when you can, and sell leave only when taking the time off is not practical. The other angle: terminal leave lets you start a civilian job (and a second paycheck) while still drawing military pay, which can be the most valuable option of all.
The 60-day sell cap is a lifetime limit
You can only sell a total of 60 days of leave across your entire career, not 60 days each time. If you sold leave at an earlier reenlistment, that counts against the 60. Keep that in mind, because it can change whether selling now is even an option.
Your final paycheck
Your last pay settles up everything through your separation date: your prorated base pay and allowances for the final partial month, any leave sell-back you elected, and the closeout of your entitlements. For enlisted members there can also be a clothing allowance settlement, which is prorated for the final year of service. Because the final pay pulls together several moving pieces, it is exactly the kind of paycheck worth checking line by line.
Other money on the way out
Depending on your situation, other payments can be in play. Members who are involuntarily separated under certain conditions may be entitled to separation pay. Make sure any outstanding travel vouchers (including a final move) are filed and settled, and confirm your last few LESs reflect everything correctly before your access goes away. Once you are out, fixing a pay error is much harder than catching it while you are still in.
The bottom line
On the way out, the biggest lever is leave: terminal leave pays your full pay and allowances, while selling leave pays base pay only and is capped at 60 days for your whole career, so terminal leave is usually worth more. Beyond that, your final pay settles your prorated pay, leave, and entitlements, and there may be separation pay or a clothing settlement. Check it all before your access ends, because errors are hard to chase down once you are a civilian.
Work out your numbers with the Final Pay Calculator and the Leave Calculator, and time it into your exit with the transition timeline.
Sources
- DoD FMR Vol 7A, Ch 35: payment for unused leave (leave sell-back)
- DoD FMR Vol 7A, Ch 29: clothing allowance (proration)
- 37 U.S.C. § 501: payment for accrued leave
Figures reflect 2026 rates and regulations. This guide is general information, not personalized financial or tax advice. Always verify with your finance office or a tax professional before making a decision. How we research and source: our methodology.
FAQ
Frequently asked questions
- Should I sell leave or take terminal leave?
- Terminal leave is usually worth more, because you keep your full pay and allowances (including BAH and BAS) while on it, whereas sold leave is paid at your base pay rate only. Selling also has a 60-day lifetime cap. The common approach is to take terminal leave when practical and sell leave only when you cannot take the time off. Terminal leave can also let you start a civilian job while still on military pay.
- How much leave can I sell back when I separate?
- You can sell a maximum of 60 days of leave across your entire career. It is a lifetime limit, not a per-separation or per-reenlistment limit, so any leave you sold at an earlier point counts against the 60. Sold leave is paid at your base pay rate only, without allowances.
- What is in my final military paycheck?
- Your final pay settles everything through your separation date: prorated base pay and allowances for the last partial month, any leave sell-back you elected, and the closeout of your entitlements. For enlisted members it can include a prorated clothing allowance, and some involuntarily separated members may receive separation pay. Check it line by line before your access ends.
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Run your own numbers
REF: Military Toolkit Guides, effective 2026
Official 2026 DoD, DFAS, DTMO, IRS, and VA sources. See each guide’s Sources list
Results are estimates. Always verify with your finance office.