How to use the job offer comparison calculator
- For each offer, enter the base salary, expected bonus, signing bonus, employer retirement contribution and other benefits you value.
- Enter the monthly health premium you pay, the monthly commute and parking cost and the hours per week.
- Choose how many years to compare.
- Read the value per year, the value per hour, the year one total and the total over your chosen years for each offer.
Formula
Value per year = salary + bonus + retirement contribution + other benefits - (premium + commute) x 12
Year 1 total = value per year + signing bonus
Total over N years = year 1 total + value per year x (N - 1)
Value per hour = value per year / (hours per week x 52)
Everything is before taxes, and everything except the signing bonus repeats each year.
A steady offer against a bigger salary
Offer A pays $85,000 with a $5,000 bonus, $3,400 of retirement contribution, $220 a month of premiums, $150 a month of commute and 40 hours a week. Its value is $88,960.00 a year, or $42.77 an hour.
Offer B pays $92,000 with a $10,000 signing bonus, $2,760 of contribution, $350 of premiums, $320 of commute and 45 hours a week. Its value is $86,720.00 a year, or $37.06 an hour, with $96,720.00 in year one. Over 3 years A is $266,880.00 and B is $270,160.00, so B is ahead by $3,280.00, mostly because of the signing bonus.
Why a higher salary is not the whole story
Two offers can look different on the headline salary and close after the extras. A bonus you are not sure to get, a retirement contribution that vests over time or a long commute can swing the comparison. Putting every item in one table lets you see which pieces drive the difference.
Value per hour matters when the hours differ. A higher salary for more hours can be a lower rate for each hour you work.
Be honest about the soft numbers
Enter only what you expect to receive, and put a number on a benefit only if you would otherwise pay for it. If a bonus is uncertain, enter a cautious amount. The tool cannot value growth, learning, stability or how much you like the work, and those can matter more than a few thousand dollars.
Taxes are not modeled and differ by place. To compare with your current job, see the gross pay calculator, and to turn the figures into hourly or yearly pay, use the hourly to salary calculator. The pay raise calculator helps with a counteroffer.
Assumptions and limits
- All amounts are before taxes and are numbers you enter.
- Everything except the signing bonus is assumed to stay the same each year, with no raises.
- Equity, vesting, paid time off, job security and growth are not modeled.
- The value per hour uses 52 weeks a year, so unpaid time off would raise the true hourly cost.
Frequently asked questions
How do I compare two job offers?
Put the same items for each offer side by side: salary, bonus, retirement contribution, benefits, premiums and commute. Then compare the yearly value, the hourly value and the total over a few years.
Should I count a signing bonus?
Yes, but only once, in the first year. The tool adds it to year one and leaves it out of the yearly value that repeats.
How do I value benefits?
Count the ones you would otherwise pay for, at what they would cost you. Leave out perks that you would not use.
Does it include taxes?
No. All figures are before taxes, and tax can differ by state and city, so compare after-tax pay separately if that matters.