Cash kept from a signing bonus after tax and clawback.

A 20,000 signing bonus at a 40% marginal rate gives 12,000 net. If there is a 25% chance you'll trigger a clawback (leave or be fired within the clawback window), the expected value drops to 9,000. Understanding this stops you from over-weighting the headline figure when comparing offers.

What the result means

The expected after-tax value is what you might mentally compare against other offers. A bigger bonus with a long clawback and a high quit risk can be worth less than a smaller, fully-vested one.

This treats the clawback as binary on the full amount. Some clawbacks are pro-rata over time — adjust by entering the probability of the worst-case full clawback only.

Quick example

With gross signing bonus of 20,000 and marginal tax rate of 40% (plus clawback probability of 25%), the result is 9,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Gross Signing Bonus, Marginal Tax Rate, and Clawback Probability. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Net after tax is gross times one minus the marginal rate. Expected value multiplies that by one minus the clawback probability — a simple expected-value adjustment for the all-or-nothing clawback case. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What the headline number hides

Gross pay, net pay, and what actually lands in your account can differ by thousands depending on tax code, benefits, pension contributions, and student loan deductions. This tool isolates one piece of that picture — always pair it with a take-home calculator for the full view.

What this doesn't capture

Tax bands, pension contributions, student-loan deductions, and benefits-in-kind sit outside this calculation. The figure is the headline; your actual position depends on local tax rules and personal circumstances. Pair with a dedicated take-home calculator for the full picture.