How do you calculate daily pay?

Daily pay = Annual salary ÷ paid workdays per year.

How is hourly rate derived?

Hourly = Annual ÷ (hours per week × 52).

Can I estimate net (after tax)?

Enter your estimated tax & deduction % to apply across frequencies for a rough net.

How to Compare Two Job Offers: Total Compensation Math

Don’t compare just base salaries. Convert everything to annual, then check monthly, daily, and hourly impacts. Here’s a step-by-step framework with examples.

1) Normalize base pay

Convert each offer to the same frequency. If Offer A is semi-monthly and Offer B biweekly, convert both to annual first, then check per-period cash flow.

2) Add recurring compensation

Bonus: target % × base salary (e.g., 10% × $78,000 = $7,800/year).
401(k) match: employer match adds real compensation.
Stipends: education, phone, commuter (annualize them).

3) Add equity (if applicable)

Annualize the value that vests each year. If $80,000 vests over 4 years, that’s $20,000/year (estimate).

4) Adjust for benefits premiums

Subtract employee-paid premiums and add employer-covered amounts to compare plans.

5) Estimate net take-home

Use the net % input to model taxes/deductions for monthly cash flow differences.

Worked example

Offer A: $78k base, 10% bonus, 4% match, $1k stipend → total ≈ $89,920.

Offer B: $76k base, 12% bonus, no match, better health coverage (+$1.8k) → total ≈ $86,920.

Decision checklist

Role scope & growth
Hours expectation (37.5 vs 40, overtime)
Commute/location flexibility

Side-by-side worksheet

Create two columns: base, bonus target, equity vest per year, match %, stipends, premiums delta. Sum for total compensation; then model monthly net.

Risk adjustments

Equity liquidity: consider a haircut if vesting is illiquid.
Bonus variability: use historical payout %, not target, if you can find it.
Commute & relocation: translate time and costs into monthly terms.

Offer comparison template

Use this template to evaluate A vs B consistently:

Base salary
Bonus target and payout history
Equity vest per year
401(k)/retirement match
Premiums & out‑of‑pocket differences
Stipends & perks

Cash flow snapshot

After total comp, check monthly net using an estimated tax %. That’s the best proxy for your day‑to‑day budget.

Questions to ask

What’s the salary band and leveling rubric?
How are bonuses calculated and funded?
What’s the vesting schedule and refresh policy?

Valuing benefits the right way

Use the employer’s contribution to premiums, not the plan list price.
Convert commuter/education stipends to annual.
Treat dependent coverage differences as cash impact.

Equity reality check

For private companies, haircut the stated value to account for liquidity risk and vesting cliffs. For public companies, consider a trailing average price.

Decision matrix

Score each offer (1–5) across compensation, growth, team, hours, and location. Weight categories based on what matters most to you.

Checklist for first 90 days

Verify pay frequency and first paycheck date.
Enroll in benefits and confirm employer contributions.
Set automatic transfers aligned to payday.

Scenario: bonus vs match trade‑off

Offer A: higher bonus, no match. Offer B: lower bonus, 5% match. Convert both to annual and model net monthly; many find stable match outweighs uncertain bonus.

Equity vesting cliffs explained

Cliffs delay initial vesting (e.g., 1‑year). If you might move roles before the cliff, discount equity value substantially in comparisons.

After-tax snapshot

When comparing offers in different states, approximate taxes with the net % field. Compare monthly net plus premium differences.

Probation & vesting cliffs

Some benefits start after 30–90 days; many equity plans have a 1-year cliff. Weight early cash flow accordingly if you might move roles sooner.

Relocation & commute

Translate commute time and moving costs into monthly dollars. A cheaper base with a long commute can still be inferior in cash & time.