Frequently Asked Questions
How total compensation is calculated and what to consider when comparing offers.
About the Calculator
What does "total compensation" include?
Total compensation in this calculator includes base salary, expected bonus (adjusted for your stated payout probability), annualized equity value, benefits value (health insurance, 401k match, etc.), and a one-time signing bonus in Year 1. It does not include taxes, expense reimbursements, or non-monetary perks.
How is the year-by-year salary growth calculated?
For each year y in your selected horizon, the estimated salary is: Base × (1 + Annual Raise %)^(y−1). So if your base is $100,000 and raise is 5%, Year 2 salary is estimated at $105,000, Year 3 at $110,250, and so on.
How is the expected bonus calculated?
Expected bonus for each year = Salary for that year × (Target Bonus % ÷ 100) × (Payout Probability % ÷ 100). For example, a $100,000 salary with a 15% target bonus at 80% probability yields an expected bonus of $12,000 for that year.
What is the "Close" result?
If the two offers are within 2% of each other over the selected time horizon, the calculator flags the result as "Close" rather than declaring a winner. This reflects that a sub-2% difference is well within the uncertainty of estimates.
How should I value equity (RSUs or options)?
Enter your best estimate of the annualized value. For RSUs at a public company, you might divide the grant value by the vesting period (e.g., $80,000 grant over 4 years = $20,000/year). For options at a private company, this is highly speculative. The equity type selector (RSU vs. Options) is informational only and does not change the calculation — it's a reminder to yourself of the equity type when reviewing results.
What should I include in "Benefits Value"?
You can include any employer-provided benefits that have tangible dollar value: estimated employer health insurance premium contribution, 401k match (e.g., 4% match on $100,000 salary = $4,000), HSA contributions, commuter benefits, and similar. Be consistent in what you include for both offers to keep the comparison meaningful.
Is my data saved anywhere?
No. All calculations run entirely in your browser. Nothing is transmitted or stored. See our Privacy Policy for details.
Limitations
What does this calculator NOT account for?
This tool does not account for: federal or state income taxes (which can differ significantly between offers with different comp structures), actual vesting schedules for equity, clawback provisions on signing bonuses, changes in stock price for RSUs/options, cost of living differences between locations, promotion timelines, or other qualitative factors (role satisfaction, career growth, culture).
Can I trust this to make my final decision?
This tool provides an estimate for planning purposes. It is one data point. Always verify figures directly against your offer letters, consult a financial advisor for tax implications of different comp structures, and factor in qualitative considerations that numbers cannot capture.
This FAQ is for general informational purposes only. Figures are estimates based on inputs provided. Verify all details with your offer letter and employer.