About the Total Compensation Calculator
This total compensation calculator turns a job offer or your current package into one comparable number. It adds your base salary, target bonus, the yearly value of an equity grant as it vests, a sign-on bonus spread over the vesting period, your employer’s retirement match, the employer share of health insurance and any other perks such as stipends or tuition support.
It is built for anyone weighing two offers, negotiating a raise or checking whether a lower base salary with more stock is really a better deal. You get both an average annual figure (the number recruiters call “total comp” or “TC”) and a first-year figure, because a one-off sign-on bonus makes year one look bigger than later years.
All amounts are pre-tax. Equity is valued at the grant value you enter and assumed to vest evenly; if the share price rises or falls the real value changes, and cliffs or back-weighted schedules shift value between years. The retirement match assumes you contribute enough to receive the full match.
With the default inputs, the total compensation (avg. per year) is $168,300.00. Change any value above to recalculate instantly.
How to use the total compensation calculator
- 1Enter your base salary and target bonus percentage.
- 2Add any sign-on bonus and the total value of your equity grant.
- 3Set the vesting period (four years is the most common).
- 4Enter the employer retirement match and the employer share of health premiums.
- 5Add other perks, then compare the average and first-year totals across offers.
Formula and method
Average annual total compensation adds base salary, the target bonus (bonus % × base), the equity grant divided evenly over the vesting years, the sign-on bonus spread over the same period, the employer retirement match (match % × base), the employer-paid health premium and other perks.
First-year compensation counts the whole sign-on bonus in year one instead of spreading it. Equity is valued at the grant value you enter; real vesting value moves with the share price, and cliff or back-loaded schedules (for example 5/15/40/40) change how much lands in each year. The hourly figure divides the average by 2,080 working hours (40 hours × 52 weeks).
- B
- Base salary per year
- b
- Target bonus as a fraction of base
- E
- Total equity grant value
- Y
- Vesting period in years
- S
- One-time sign-on bonus
- m
- Retirement match as a fraction of base
- H, O
- Employer health premium and other perks per year
Worked examples
$120k offer with bonus, RSUs and benefits
Base $120,000 plus a 10% bonus gives $132,000 cash. The $80,000 RSU grant adds $20,000 a year over four years, the $10,000 sign-on adds $2,500 a year when spread, and the 4% match, health and perks add $13,800. Average total compensation is $168,300; year one is $175,800 because the whole sign-on is paid then.
Senior tech offer with a large equity grant
A $185,000 base with a 15% bonus is $212,750 cash. The $300,000 grant vests at $75,000 a year, the $25,000 sign-on adds $6,250 a year averaged, and the match, health and perks add $21,250 — about $315,250 total comp per year and $334,000 in year one.
Salary-only role with standard benefits
With no bonus or equity, the $75,000 salary is topped up by a $2,250 match, $6,000 of employer health cover and $500 of perks. The package is worth $83,750, or about $40.26 per hour — 11.7% more than the salary suggests.
Frequently asked questions
What does total compensation include?+
Total compensation (total comp or TC) usually means base salary plus bonus plus the yearly value of equity. A fuller view also counts the employer retirement match, employer-paid health premiums and perks, which this calculator includes separately so you can see each part.
How do I value RSUs in a job offer?+
Divide the total grant value by the vesting period to get a yearly figure — a $100,000 grant over four years is $25,000 a year at today’s price. Remember that RSUs are taxed as income when they vest and the value moves with the share price.
Should I include the sign-on bonus in total comp?+
Recruiters often quote first-year comp including the full sign-on bonus, but it will not repeat. Spreading it over the vesting period (as the average figure here does) gives a fairer comparison between offers. Check any clawback clause if you leave early.
How much are employer benefits worth?+
Employer health premiums commonly run several thousand dollars a year for single cover and much more for family cover; your HR portal or W-2 box 12 (code DD) shows the actual cost. A 401(k) match is only worth its full value if you contribute enough to receive it.
Is total compensation before or after tax?+
Total compensation is quoted before tax. Salary, bonus and vested RSUs are taxable income, while employer health premiums and retirement matches are generally tax-advantaged, so two packages with the same total comp can produce different take-home pay.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.