Which job offer actually pays more?
The higher salary loses more often than you'd think. Count the match, the benefits bill and the commute.
| Offer A | Offer B | |
|---|---|---|
| Base salary | ||
| Expected annual bonus | ||
| Signing bonus (one time) | ||
| 401(k) match (% of salary) | ||
| Other employer money per year (HSA, stipends) | ||
| Your health premium per month | ||
| Commute cost per month | ||
| 401(k) match in dollars | – | – |
| Real value per year | – | – |
| First year incl. signing bonus | – | – |
What counts and what doesn't
Counted: salary, expected bonus, the employer's 401(k) match, other money the employer puts in your pocket (HSA contributions, stipends), minus what you pay for health insurance and what it costs you to get to work.
Not counted: taxes (they scale with pay, so they rarely flip the answer), stock that hasn't vested, and anything you can't put a number on, like the manager. Those still matter; they just don't belong in the math.
Use the bonus you'll probably get, not the maximum. If the recruiter says "up to 10%," ask what people at your level actually received last year.
Questions
How do I compare two job offers with different salaries?
Add up everything the employer pays you, subtract what the job costs you, and compare those totals. The pieces that change the answer most are the 401(k) match, your share of the health insurance premium and the commute.
How much is a 401(k) match worth?
A match of 4% of salary on a $60,000 job is $2,400 a year of free money, but only if you contribute enough to get it. Always contribute at least up to the full match.
Should a signing bonus change my decision?
Only for year one. A $5,000 signing bonus is paid once; a $3,000 higher salary is paid every year and raises compound on it. Many signing bonuses also have to be repaid if you leave within a year.
What about remote work?
Put your real monthly commute cost in for an in-office job (gas, parking, transit, wear on the car) and $0 for remote. The difference is often several thousand dollars a year.
Taking the job in a new city? See how much rent the offer supports.