Salary vs Total Compensation Calculator 2025 – True Offer Value

Introduction

Two similar base salaries can hide very different total compensation. This guide tallies bonus, equity, benefits, perks, and taxes to compare true offer value in 2025.

---

Inputs

• Base salary and bonus targets
• Equity grant (type, vesting, valuation)
• Benefits value (health, retirement match, PTO)

---

Output

• Annualized total comp number per offer
• After‑tax view for comparable frequencies

---

Tips

• Discount equity for risk and vesting cliffs
• Include 401(k) match and HSA contributions
• Consider remote perks and flexibility value

---

Related Tools

• Take‑Home Pay Calculator 2025: /calculator
• Pay Frequency Converter 2025: /calculator
• Salary Negotiation Target 2025: /calculator

---

CTA: Compare Offers Fairly

Enter both offers to see the true total compensation and make a confident choice.

---

What Is Total Compensation? (Deep Dive)

Beyond base salary, total comp includes: annual/target bonus, equity (RSUs/PSUs/options), benefits (health/dental/vision), retirement match, paid time off, stipends (home office/commute), and unique perks. Some items are pre‑tax (valuable for take‑home), while equity is deferred and risky.

---

Normalizing Offers Step‑by‑Step

1. Annualize base salary and target bonus
2. Equity: convert to annualized expected value (grant value × discount for risk/vesting ÷ vest years)
3. Benefits: add employer health subsidy, 401(k) match, HSA contributions
4. PTO: add value of paid days (base/working days × paid days)
5. Special perks: tuition, relocation, childcare, commuter, wellness
6. Subtract expected out‑of‑pocket premiums to compare net benefits

---

Examples (Illustrative)

Offer A (High Base, Low Equity)

• Base $160k, 10% bonus, equity $20k/yr EV, rich benefits
• Total comp ≈ base + bonus EV + equity EV + benefits value + PTO value

Offer B (Lower Base, High Equity)

• Base $145k, 15% bonus, equity $40k/yr EV but 4‑year vest with cliff
• Discount equity for risk and lack of liquidity; scenario test bear vs bull

---

Equity Valuation Notes

• RSUs: taxed as ordinary income at vest; check withholding adequacy
• Options: value depends on strike vs FMV and expiry; Black‑Scholes style estimates are rough—apply a practical haircut
• PSUs: performance and market risk; apply heavier discounts unless targets are historically reliable

---

Optimization Playbook

• Negotiate sign‑on bonuses to bridge gaps or offset lost unvested equity
• Ask for equity refresh cadence; value compounds over time
• Consider remote differential and COLA if moving
• Evaluate promotion velocity and internal range headroom

---

Pitfalls to Avoid

• Taking grant value at face value; haircut for risk, cliff, and dilution
• Ignoring taxes and sell‑to‑cover at vest
• Overlooking 401(k) match differences and health plan tiers
• Comparing monthly premiums without considering deductibles/OOP max

---

Frequently Asked Questions

Q: How do I compare RSUs vs options?
A: RSUs are simpler and less risky; options can be worth more but carry strike/expiry risk. Apply a discount and scenario test.

Q: What if the role has more PTO?
A: Convert paid days to dollar value; more PTO raises effective hourly rate.

Q: Should I pick higher base or higher bonus?
A: Base is guaranteed; bonus depends on company/individual performance. Blend with equity to fit risk tolerance.

---

Checklist (Copy/Paste)

• Annualize base/bonus
• Discount equity to annual expected value
• Add benefits, match, HSA contributions
• Add PTO value and unique perks
• Compare after tax where possible; pick offer aligned to risk and growth