Why base salary is the wrong number to compare
Two offers with the same base salary can differ by twenty per cent or more in what they are actually worth. Bonus structures, employer pension contributions, health cover, paid leave and the cost of getting to work all move real money, and none of them appear in the headline figure that people quote to each other.
This calculator does not tell you what a role should pay. It tells you what the offers in front of you are worth once everything is counted, which is the comparison that actually decides things.
What to count
- Base salary. The guaranteed part, and the only part you can fully rely on.
- Bonus. Enter the realistic figure, not the maximum. Ask what percentage of target was actually paid in each of the last two years — a "20% bonus" that pays out at half is a 10% bonus.
- Equity. For public companies this is reasonably countable. For private ones it is a lottery ticket with a strike price, so many people value it at zero when comparing and treat any payout as upside.
- Employer pension or retirement contribution. Real money, paid on your behalf, and frequently ignored. A 6% match on a lower base can beat a higher base with 3%.
- Health and insurance cover. Count what you would otherwise pay yourself.
- Paid leave. Days of leave have a cash value: your daily rate multiplied by the days. Five extra days is roughly 2% of salary.
- Commute. Both the money and the hours. A 45-minute each-way commute is around 375 hours a year, which is nine working weeks.
The number most people miss: effective hourly rate
A role paying 15% more that expects 55-hour weeks instead of 40 pays less per hour of your life. The calculator works out an effective hourly rate that includes commuting time, because that is time the job costs you even though it is unpaid. It is often the figure that changes someone's mind.
What the numbers cannot tell you
Compensation is a floor, not a decision. The things that determine whether you are still happy in two years — the manager, whether you will learn anything, whether the company is stable, whether the work interests you — do not fit in a spreadsheet. Use this to rule out offers that are worse than they look, then decide on the parts that matter more.
One practical warning: a large gap between two offers is worth checking rather than celebrating. Unusually high pay for the level sometimes prices in turnover, difficulty or instability that is not mentioned in the interview.
If you are negotiating
- Negotiate the whole package, not just base. Signing bonuses, extra leave, a later start date and remote days are often easier to grant than base salary, which is usually bound to internal bands.
- Get the full offer in writing before you respond. Bonus targets and equity terms are where the ambiguity lives.
- Ask what the band is for the level. Many employers publish it now, and in a growing number of places they are required to on request.
- Do not invent a competing offer. It is checked more often than people expect, and it ends badly.
Frequently asked questions
Does this tell me the average salary for my job?
No, deliberately. Reliable pay data is local, current and role-specific, and any figure we published here would be a guess dressed up as a fact — which is exactly the sort of number that costs someone money in a negotiation. For real market data, use your government's labour statistics, a recent industry survey, or the published bands employers in your area put on their own postings.
Is tax included?
No. These are gross figures, because tax depends on where you live, your filing status and your other income. Compare gross here, then run the winning offer through a take-home calculator for your country to see the net.
Are my figures stored?
No. Everything is calculated in your browser and nothing is uploaded or saved. Closing the tab clears it.
How should I value private company equity?
Cautiously. Unless there is a liquidity event on the horizon, many people compare offers with private equity valued at zero and treat any eventual payout as a bonus. If you do count it, use the current preferred share price rather than a projection, and remember that it usually vests over four years and can be worth nothing.
