Is This Promotion Financially Worth It?
Compare the after-tax raise and bonus with additional hours, commute, childcare, and unreimbursed role costs.
Compensation change
Use expected bonus values and your marginal rate on additional cash compensation.
Added demands
Enter only costs and hours caused by the promotion.
About the Is This Promotion Financially Worth It?
A promotion's raise looks smaller once it's taxed, and it can come with real costs — more hours, a longer commute, added childcare, or other role-specific expenses — that aren't always weighed against the pay bump. This calculator compares the after-tax value of a promotion's salary and bonus increase against the added demands it creates, producing a net financial figure rather than just a percentage raise. It's designed for anyone evaluating whether to accept a promotion, negotiate its terms, or decide if a lateral move with different demands is worth pursuing instead — while making clear that a financially thin promotion can still be worth taking for the career capital, title, or future mobility it provides.
How this calculator works
The exact model, assumptions, and limitations used for this decision.
Net promotion value = after-tax increase in salary and expected bonus − value of added hours − added commute, care, and role costs.
Calculation steps
- The compensation increase is taxed at the entered marginal rate.
- Added weekly hours are annualized over 52 weeks and multiplied by personal time value.
- Only incremental costs caused by the promotion are deducted.
Important assumptions
- Expected bonuses are probability-weighted.
- The entered marginal tax rate applies to incremental cash compensation.
- Future raises, career capital, severance risk, and pension changes are excluded.
Frequently asked questions
Common questions about inputs, assumptions, and interpreting the result.
01Why use a marginal tax rate?+
The calculator taxes the additional compensation, so the rate applying to the next dollars of income is more relevant than the effective rate on all income.
02How should extra responsibility be valued?+
Translate predictable added hours and cash costs directly. Stress, accountability, travel, and job risk that cannot be priced should remain qualitative decision factors.
03Should bonus use the target amount?+
Use expected value: target bonus multiplied by the realistic probability of earning it.
04What if the promotion improves future earnings?+
The calculator measures current annual value. You can add a conservative annual career-growth value to the new bonus field or evaluate a longer-term scenario separately.
05How should additional travel be entered?+
Include unreimbursed transportation, meals, care, and the time value of travel beyond your current role.
06Can a financially negative promotion still be worthwhile?+
Yes. Skills, title, future mobility, influence, and satisfaction may justify a short-term cost. The score measures only modeled financial strength.
07How should I handle a promotion that changes my work location?+
Add any new commute, housing, or relocation costs to the added-demands fields, or use the relocation salary calculator alongside this one if the promotion requires moving to a new city.
08What if the promotion comes with stock or equity?+
Add a conservative, probability-adjusted annual value for the equity to the new bonus field, the same way you would value equity in a job offer comparison.