Salary vs Total Compensation
Compare a salary-heavy offer with an offer that includes bonus, equity, retirement contributions, and employer-paid benefits.
Offer A
Use annual expected values.
Offer B
Probability-adjust uncertain equity rather than entering headline grant value.
About the Salary vs Total Compensation
Comparing two job offers on base salary alone can be misleading once bonus, equity, retirement matching, and employer-paid benefits enter the picture — a lower salary with a strong 401(k) match and rich health coverage can be worth more than a higher salary with thin benefits. This calculator converts every component of an offer into an annual dollar figure so two very differently structured packages become directly comparable. It's particularly useful when one offer leans heavily on equity or bonus, which should be probability-adjusted rather than taken at face value, or when benefits packages differ substantially between employers. Use it any time you're evaluating a new offer, a counteroffer, or simply trying to understand what your current package is really worth in total-compensation terms.
How this calculator works
The exact model, assumptions, and limitations used for this decision.
Expected total compensation = salary + expected bonus + probability-adjusted equity + employer retirement contribution + employer-paid benefits.
Calculation steps
- Guaranteed and expected annual cash compensation are added separately.
- Offer B equity is multiplied by the entered probability of realization to reduce headline-value bias.
- Employer contributions and benefits are included at the incremental value to the employee.
Important assumptions
- All amounts use the same annual period.
- Taxes, vesting schedules, and discounting are reflected only through user estimates.
- Benefits are valued by economic value to the employee, not necessarily employer cost.
Frequently asked questions
Common questions about inputs, assumptions, and interpreting the result.
01What is included in total compensation?+
Salary, expected bonus, expected equity, employer retirement contributions, and employer-paid benefits are included. Add signing bonuses only after annualizing them over the period you expect to stay.
02How should private-company equity be valued?+
Use a heavily probability-adjusted value that considers vesting, dilution, exercise cost, liquidity, company failure, and the chance you leave before an exit.
03Should employer health cost equal its value to me?+
Not necessarily. Value the coverage based on what comparable insurance would cost you and differences in premiums, deductibles, networks, and expected out-of-pocket spending.
04Does the calculator account for taxes?+
No. Different compensation forms can have different timing and tax treatment. Results are gross economic values unless you enter after-tax expected amounts.
05How should a pension be entered?+
A defined-benefit pension needs an actuarial present value rather than a simple annual contribution. Request the plan's benefit estimate or consult a qualified professional.
06Why probability-adjust equity?+
A grant's face value is not guaranteed compensation. Probability adjustment prevents uncertain future value from being treated like cash salary.
07How should a signing bonus be entered?+
Divide it by the number of years you expect to stay, since it's a one-time amount rather than recurring compensation. A $20,000 signing bonus for a role you expect to hold three years adds roughly $6,700 of annual value.
08What if one offer has unlimited PTO and the other has a fixed amount?+
Estimate the cash value of the additional days you'd realistically take off using your hourly-equivalent pay, and add that to the lower-PTO offer's benefits field for a fairer comparison.