How the job offer comparison calculator works
- Name each offer and choose hourly or salary pay. Add a third offer if you need one.
- Enter the schedule: hours a week, paid days off, and the overtime you expect in a typical week. Uncheck overtime pay for exempt roles.
- Open "Bonus, benefits, and commute" to add bonuses, a signing bonus, retirement match, your yearly benefit costs, and your commute.
- Compare the results. Offers are ranked by yearly value, with a breakdown and pay per hour worked, with and without commuting time.
Job offer comparison formula
Worked example: $25 an hour or $60,000 a year
Offer A: $25.00 an hour, 40 hours plus 5 overtime, 15 days off. Offer B: $60,000 exempt salary, 45 hours, 25 days off, $3,000 bonus
- Offer A base: $25.00 × 40 × 52 = $52,000.00. Overtime: $37.50 × 5 × 49 weeks worked = $9,187.50. A 4% match adds $2,080.00.
- Offer A costs $1,800.00 in benefits and $1,470.00 in commuting. Yearly value: $59,997.50.
- Offer B: $60,000.00 + $3,000.00 bonus + $1,800.00 match − $2,400.00 benefits − $2,820.00 commuting = $59,580.00, or $64,580.00 in the first year with the $5,000 signing bonus.
- Per hour including commuting: Offer A $25.78, Offer B $25.35.
The salary looks bigger, yet the hourly offer is worth slightly more each year. Offer B leads only in year one, because of the signing bonus.
Beyond the numbers
Yearly value is a starting point. Also compare how predictable the schedule is, how much overtime you can really expect, how quickly raises arrive, health plan quality, job security, and the work itself. The raise calculator shows how an expected raise changes the picture, and the salary to hourly calculator checks a salary against your real hours.
Related reading: hourly vs salary: how to compare two job offers.
Assumptions
- A five-day workweek. Days off include paid time off and paid holidays.
- Hourly base pay uses paid weeks a year; enter fewer than 52 if time off is unpaid. Salary is the full annual amount.
- Retirement match is a percent of base pay and assumes you contribute enough to receive all of it.
- Values are gross, before taxes. Employer-paid premiums, equity, and perks are not included.
Frequently asked questions
Is a higher salary always the better offer?
No. Overtime pay, bonuses, retirement match, what you pay for benefits, and commuting can easily outweigh a few thousand dollars of base pay. Hours matter too: a salary that expects 50-hour weeks can pay less per hour than a lower hourly rate.
Why does the signing bonus not count in yearly value?
A signing bonus is paid once. Yearly value shows what the job is worth in a typical year, and first-year value adds the signing bonus on top. Check whether the signing bonus must be repaid if you leave early.
How is overtime counted for a salaried job?
If the job is exempt from overtime, leave "Overtime is paid at a premium" unchecked: extra hours lower your pay per hour but add no pay. Some salaried jobs are non-exempt. Then overtime is paid at the multiplier on the weekly salary divided by your scheduled hours.
How do I value health insurance?
Enter what you would pay each year for the plan you would choose, from each offer's benefits summary. The calculator subtracts it. The employer's share of premiums is not added, because it is not cash you can spend; it shows up instead as lower costs for you.
Does the calculator include taxes or equity?
No. All values are gross, before taxes. Stock, options, and other equity are not included because their value is uncertain. Compare them separately, along with growth, schedule, and job security.
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How this calculator was built. The formula, defaults, and edge cases are documented in a research record and covered by automated tests. It estimates gross amounts from your inputs; it does not determine legal entitlements, taxes, or take-home pay. Read our methodology and disclaimer.
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