How to use this calculator
Start by entering the base salary for each job offer in the corresponding column. Then fill in the annual bonus amount, 401k employer match percentage, and the salary percentage your employer will match up to. These fields capture the core cash and retirement value of each offer.
Next, enter your monthly health insurance premium, the number of paid time off days per year, and your estimated monthly commute cost for each position. The calculator subtracts your out of pocket costs and produces a total compensation number for each offer. Because your salary already pays for your PTO, the calculator does not count those days twice. Instead, when one offer gives more days off than the other, it adds the value of just those extra days.
Review the results to see which offer has a higher total compensation value. The summary shows a side by side breakdown so you can see exactly where each offer is stronger or weaker. Pay attention to the difference column, which highlights the gap between the two offers in each category.
Understanding total compensation
Base salary is just the starting point. Total compensation includes bonuses, retirement matching, the value of any extra paid time off, and subtracts costs you bear like health insurance premiums and commuting. Two offers with the same salary can differ by $15,000 or more in true value.
Your base salary already pays for your PTO days, so PTO is not added on top as extra dollars. Doing that would count the same paid days twice. When two offers differ in PTO, the extra days from the more generous offer are valued at your daily rate (annual salary divided by 260 working days), because that is the real added benefit. The 401k match is calculated as the percentage your employer matches times the percentage of salary they match up to. For example, a 100% match on up to 6% of a $90,000 salary is $5,400 in free money per year.
Frequently asked questions
Should I always take the higher salary?
Not always. Benefits, PTO, 401k match, and lower costs can make a lower salary offer worth more. Use this calculator to see the total picture before deciding.
How do I value benefits?
Convert everything to annual dollars. Your salary already covers your PTO, so only the extra days one offer gives over the other count as added value, at your daily rate. 401k match as actual dollars contributed by your employer. Health insurance as your total annual premium. Then add or subtract from base salary.
What about growth potential?
Growth potential is hard to quantify but matters long term. A company with clear promotion paths, rapid growth, and skill development may outperform a higher starting salary within a few years.
Is a signing bonus worth it?
Signing bonuses only add value in year one and do not compound. A higher base salary adds the same amount every year and grows with future raises. For roles you plan to stay in, prefer higher base pay.