Beyond base salary
How to compare job offers on total compensation
Salary is only one line on your compensation statement. Benefits — health insurance, retirement matching, paid time off, bonuses — can easily add 20% to 40% on top of base pay. Comparing two offers on salary alone can lead you to pick the poorer deal.
What counts as total compensation
Total compensation is the sum of every monetary benefit your employer provides: base salary, employer-paid health and dental premiums, employer 401(k) match, annual bonus, stock grants or profit-sharing, PTO valued at your daily rate, life and disability insurance premiums, tuition reimbursement, commuter benefits and any other taxable or non-taxable perks. This calculator focuses on the five biggest components, which typically account for 95% or more of the total.
Valuing PTO in dollars
Divide your annual salary by 260 working days to get a daily rate, then multiply by PTO days. A $75,000 salary with 25 PTO days is worth $7,212 in paid time off — almost $3,000 more than the same salary with just 15 days ($4,327). When one offer has notably more PTO, it can close a salary gap faster than most people expect.
| Component | Offer A | Offer B |
|---|---|---|
| Base salary | $80,000 | $72,000 |
| 401(k) match | $2,400 | $4,320 |
| Health ins. (employer share) | $5,000 | $8,000 |
| PTO value | $4,615 | $6,923 |
| Annual bonus | $0 | $5,000 |
| Total compensation | $92,015 | $96,243 |
In this example, Offer B's $8,000 lower salary is more than offset by stronger benefits. Default values above; enter your own numbers in the calculator.
Factors beyond the numbers
Some benefits do not convert neatly to dollars but still matter: remote work flexibility, commute length, career growth trajectory, company stability, vesting schedules on retirement contributions, and workplace culture. Use the total comp number as a financial baseline, then weight the intangibles on top.
Questions
Job offer comparison FAQ
How do I compare two job offers fairly?
Look beyond base salary. Add the dollar value of health insurance (employer's share of premium), 401(k) match, annual bonus, PTO days valued at your daily rate, and any other perks like tuition reimbursement or commuter benefits. Subtract your employee share of health premiums. The total compensation number is the fair comparison point.
How much is employer health insurance worth?
The average employer contribution toward health insurance is roughly $6,500 per year for single coverage and $16,000 for family coverage as of recent KFF survey data. The exact value varies widely by employer. Enter the employer's share of your premium to compare offers accurately.
How do I value PTO days?
Divide your annual salary by 260 (working days per year) to get your daily rate, then multiply by the number of PTO days offered. For example, 20 PTO days on a $75,000 salary are worth about $5,769. More PTO at a slightly lower salary can be worth more in total.
Should I factor in commute costs?
Yes, especially if one job is remote and the other is in-office. Commute costs include gas or transit fares, vehicle wear, tolls, parking, and the time value of commuting hours. A $5,000 salary difference can be erased by a long daily commute.
Is a higher salary always the better offer?
Not necessarily. A lower salary with a generous 401(k) match, cheap health insurance, and more PTO can exceed a higher salary with poor benefits. The total compensation view often reverses the ranking. This calculator adds all monetary benefits to each offer for a true comparison.
How much is a 401(k) match worth per year?
A common match is 50% of your contributions up to 6% of salary. On a $75,000 salary contributing 6%, your employer adds $2,250 per year in free money. Some employers match dollar-for-dollar, doubling that figure. Always contribute at least enough to capture the full match.
- Sources: IRS Rev. Proc. 2025-32 (2026 brackets) · SSA 2026 wage base ($184,500) · KFF Employer Health Benefits Survey.
- 🔄 Last updated July 2026 · Tax year 2026
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