📖 Overview
This calculator compares two compensation paths on net value rather than headline salary.
It adjusts for tax impact role linked cost drag and annual benefit differences so the final decision reflects real purchasing power.
🧪 Example Scenarios
Use these default and higher-pressure example inputs to explore how sensitive this calculator is before using your real numbers.
| Input | Base Case | Higher Pressure Case |
|---|---|---|
| Base Offer Salary ($) | 120,000 | 138,000 |
| Counter Offer Salary ($) | 128,000 | 147,200 |
| Effective Tax Rate (%) | 27 | 32.4 |
| Annual Extra Costs In Counter Role ($) | 4,000 | 4,800 |
| Annual Extra Benefits In Counter Role ($) | 6,000 | 6,900 |
⚙️ How It Works
Compares two compensation scenarios by converting both to net annual value, then adjusting for role-specific costs and benefit differences.
The Formula
Net Value = Salary × (1 − Tax Rate) − Added Costs + Added Benefits
| Base Salary | Guaranteed salary in your current/initial offer |
| Counter Salary | Guaranteed salary in the counter offer |
| Tax Rate | Effective tax burden used to convert gross to net |
| Added Costs | Extra annual costs tied to the counter (commute, parking, etc.) |
| Added Benefits | Annualized value add in counter (stipends, bonus guarantees, etc.) |
💡A higher gross offer can still underperform after taxes and role-specific costs. Always compare on net value, not only headline salary.
Quick Reference
| Scenario | Gross Salary | Effective Net | Adjusted Net |
|---|---|---|---|
| Base | $120,000 | $87,600 @ 27% | $87,600 |
| Counter + commute cost | $128,000 | $93,440 @ 27% | $89,440 |
| Counter + cost + added benefits | $128,000 | $93,440 @ 27% | $95,440 |
When To Use This
- Use this tool when you need a fast decision during active planning or execution.
- Use this before committing money, time, or tradeoffs that are hard to reverse.
- Use this to compare options using the same assumptions across scenarios.
Edge Cases To Watch
- Results can be misleading if key inputs are missing, stale, or unrealistic.
- Very small or very large values may amplify rounding effects and interpretation risk.
- If assumptions change mid-decision, recalculate before acting.
Practical Tips
💡 Separate guaranteed comp from variable comp when comparing offers.
💡 Annualize all role differences (parking, healthcare, stipend, commute).
💡 Use effective tax rate from real pay history for cleaner comparison.
Frequently Asked Questions
❓ Should RSUs and bonuses be included?
Yes, but include only expected/probable value and discount uncertain upside.
❓ Why use effective tax rate?
It reflects real net conversion better than marginal bracket headlines.