Compare total compensation across two competing job offers

Salary isn't the number you might compare

Comparing two job offers by gross salary alone is one of the most common mistakes in career decisions. Total compensation includes: base salary, pension contributions (employer and allowed employee match), bonuses (expected value, not maximum), stock/RSU grants (vesting schedule matters), private medical, life insurance, critical illness, training budget, flexible working provisions, and commute costs. A 60,000 offer with strong benefits often beats a 65,000 offer with minimal benefits. This calculator aggregates these; the commentary below is about how to weight the categories.

Pension contributions: genuinely free money

A job with 8% employer pension contribution is worth meaningfully more than one with 3%. On a 60,000 salary, the difference is 3,000/year — and that 3,000 compounds in pension for 20-30 years. Over a career, the higher-match job can produce 100,000-300,000 more retirement wealth. This factor often dominates compensation comparisons if the match difference is large. A 60,000 job with 10% employer match routinely beats a 65,000 job with 3% match on total compensation terms.

Bonuses: the expected value calculation

Job offer comparisons often use quoted bonus figures uncritically. More honest math: expected value = bonus size × probability of achieving it. A "10,000 target bonus, achievable" where 60% of staff hit target produces expected value 6,000, not 10,000. A "up to 15,000 bonus" where few hit the maximum produces expected value around 8,000 at best. Checking bonus payment history (if information is available) or asking specifically about last year's average bonus percentage gives more realistic figures than the optimistic number in the offer letter.

Stock and RSU vesting schedules

Pre-IPO startup equity: theoretical value, substantial probability of zero. Public company RSUs with standard vesting (25% per year over 4 years): depends on share price performance AND staying. Restricted stock with cliff vesting (all vests at end): higher risk if you leave early.

The honest valuation for offer comparison: current share price × number of shares × probability-weighted retention. A 40,000 RSU grant over 4 years at a public company is worth roughly 32,000-38,000 expected value (accounting for share price volatility and possibility of leaving before full vesting). At a pre-IPO startup, the same nominal figure is worth 5,000-20,000 expected value (depending on company stage and health). Comparing two offers where one has RSUs and the other doesn't requires this risk-adjustment.

Commute cost: the invisible salary cut

A 60,000 job at home beats the same 60,000 job requiring a 45-minute commute each way. The commute costs: 2,500-5,000/year in fuel/train tickets, 390 hours/year (at 1.5 hours × 260 days), and the health/energy cost of the commute itself. On a per-hour-of-life basis, the office job pays dramatically less than the remote job. For offers comparing remote vs office, the commute-adjusted hourly rate is often 15-25% lower for the office job, even at the same headline salary.

Flexible working: the non-financial compensation

Four-day weeks, compressed hours, flexible start times, and unlimited leave (real unlimited, not theoretical) are all forms of compensation. A job with "4 days, 3 days off" at 80% salary often provides higher quality of life than full-time at 100% salary — even though the compensation calculator shows it as worse. The analysis depends on: value of the extra day/week to you, whether you'd actually use it productively, and whether your career advancement is harmed by non-full-time status. For most people in mid-career with stable home life, flexibility matters more than cash in marginal offer decisions.

The step-up effect: what the offer implies about future pay

The offer's base salary is an anchor for future pay rises. If Company A offers 60,000 with 4% typical annual rises, you're at 88,000 in 10 years. Company B offering 65,000 with 3% rises puts you at 87,000 in 10 years — essentially equal. Company C offering 60,000 with 6% rises (maybe a high-growth tech company) puts you at 107,000 — substantially ahead. The rise rate matters as much as the starting salary. Researching typical rise patterns at each company (through Glassdoor, Levels.fyi, or recruiter conversations) informs which offer actually wins long-term.

Private medical and protection benefits

In the country, public healthcare access limits the value gap between private medical and no-medical for most working-age people. Still, faster specialist access and private hospital rooms have real value for those who'd pay for them. Typical private medical is worth 500-1,500 cash equivalent annually; premium cover with more extensive exclusions reduced can be worth 2,000-3,500. Life insurance and critical illness cover have real value: 4x death-in-service benefits, critical illness cover of 100,000+, and income protection can collectively be worth 1,500-3,000/year if you'd have purchased equivalent private coverage.

Training and career investment

Training budgets vary from 0 to 10,000/year per employee. A 5,000 training budget, used well, produces skills that increase future earning capacity. This is unlike most benefits because it compounds into future income rather than being consumed in the current year. Employers with robust training cultures (Big Four, tech firms, professional services) have different long-term value than those without (most smaller firms, many startup stages).

Geography and cost of living

A 70,000 offer vs 55,000 offer: the figure looks better, but the cost-of-living adjustment matters. rents 70-100% higher than. Travel and general costs 15-25% higher. A back-of-envelope calculation: the breakeven salary for equivalent lifestyle to 55,000 is roughly 70,000-75,000. Above that wins; below, wins. For offers across regions, the lifestyle-adjusted comparison is usually tighter than the headline salary difference suggests.

The intangibles that decide it

After running all the financial math, the decision often turns on intangibles: manager quality (biggest single predictor of job satisfaction), team dynamics, company mission alignment, career trajectory, location preferences, commute reality, cultural fit, and gut feel during interviews. These aren't fluffy considerations — they predict tenure, engagement, and whether the 10-year salary trajectory assumption above plays out. Strongly worse financial offers sometimes win on intangibles; strongly better financial offers sometimes lose on them. The calculator gives you the number; the decision requires judgment.

What this calculator shows

The tool aggregates quantifiable compensation components (base, bonus, pension, equity, benefits) into a total compensation figure. It doesn't automatically probability-weight bonuses or equity, adjust for cost of living, or capture intangible factors. Use the output as the compensation baseline; the decision itself weighs all the factors above.