Benefits Package Total Compensation Calculator
Compare job offers more fairly by estimating total compensation: base pay plus bonus plus employer benefits. Includes an optional “PTO value” view so you can see the value of paid days off.
Why Base Salary Isn’t the Whole Offer
Two offers can look identical on the surface—say $120,000 base salary—yet be very different financially. One employer might pay most of your health insurance premium and contribute a generous retirement match, while another might offer minimal benefits and expect you to cover higher out‑of‑pocket costs. Some companies offer a meaningful annual bonus; others don’t. Paid time off (PTO) can also change the practical value of an offer: if you receive more paid days off, you are effectively being paid for more non‑working time, which matters when comparing to a job with fewer paid days and a higher workload.
Job seekers often compare offers using only base salary because it’s the clearest number. Hiring managers sometimes focus on base salary because budgets are set that way. But a fair, apples‑to‑apples comparison should convert benefits into a yearly dollar value and then compute total compensation. This is also useful internally: companies that want pay equity need to understand how total comp differs between employees, not just salary.
This calculator provides a structured, conservative approach. It doesn’t try to put a dollar value on every possible perk (free lunches, commuter subsidies, or learning stipends). Instead, it focuses on the big items that most people can quantify:
- Base salary
- Bonus (as a percent of base)
- Employer retirement match (modeled on your contribution rate)
- Employer health insurance premium contribution
- PTO days (optional “value” view)
What “Total Compensation” Means
Total compensation is the sum of cash compensation and employer‑provided benefit value. In a simplified annual view:
- Cash compensation: base salary + expected bonus
- Employer benefits: retirement match + employer health premium contribution + other quantifiable benefits
Some benefits are hard to value precisely. For example, health insurance benefit value depends on claims and plan design, not just premiums. PTO “value” depends on workload and whether you can actually take the time off. For that reason, this calculator separates “hard dollars” (employer contributions) from “equivalent value” (PTO value), so you can decide how to interpret it.
Core Formulas
Let:
- S = annual base salary
- b = bonus rate (as a decimal)
- m = employer match rate on eligible salary (as a decimal)
- c = employee contribution rate used to earn match (as a decimal)
- H = employer health premium contribution per month
- P = PTO days per year
- D = working days per year (commonly ~260)
Expected bonus is:
Retirement match is usually capped by the employee contribution rate. If the employer matches up to m of salary but you only contribute c, then matched percent is min(m, c). Employer match value is:
Employer health premium contribution is:
PTO value (optional) is often approximated by your daily salary rate times PTO days:
Total compensation (hard dollars) is base + bonus + employer match + employer health contribution. “Total comp including PTO value” adds PTO value as an equivalent.
Worked Example
Offer A: $120,000 base salary, 10% target bonus, employer matches up to 4% and you plan to contribute 4%, employer pays $650/month toward health premiums, and PTO is 15 days.
Offer B: $126,000 base salary, 5% bonus, employer matches up to 2% and you contribute 2%, employer pays $250/month toward health premiums, and PTO is 10 days.
Offer A cash: $120,000 + $12,000 = $132,000. Match: $120,000 × 4% = $4,800. Health: $650×12 = $7,800. Hard total: $144,600.
Offer B cash: $126,000 + $6,300 = $132,300. Match: $126,000 × 2% = $2,520. Health: $250×12 = $3,000. Hard total: $137,820.
Even though Offer B has a higher base salary, Offer A’s benefits make it higher total compensation by ~$6,780 in hard dollars. PTO value also differs: using 260 working days, Offer A PTO value is about ($120,000/260)×15 ≈ $6,923, while Offer B PTO value is ($126,000/260)×10 ≈ $4,846. That’s an additional ~ $2,077 of “paid time” value if you can truly take the days.
Comparison Table: What to Count
| Component | Usually Quantifiable? | How to Approximate |
|---|---|---|
| Base salary | Yes | Annual amount |
| Bonus | Often | Target percent × base (risk-adjust if uncertain) |
| 401(k) match | Yes | Salary × min(match cap, your contribution) |
| Employer health premium contribution | Yes | Employer monthly contribution × 12 |
| PTO | Approximate | Daily salary × PTO days (only if truly usable) |
| Equity | Uncertain | Annualized expected value with risk discount |
Health Insurance: Premium Contribution vs True Value
It is tempting to treat your employer’s monthly premium contribution as the “value” of health insurance, but the real value depends on plan design. Two employers might both contribute $600/month, yet one plan could have a much lower deductible and out‑of‑pocket maximum. If you rarely use healthcare, premium contribution is a reasonable proxy for value. If you have predictable medical spending, the plan’s deductible and coinsurance can dominate. A more advanced offer comparison would estimate an expected annual out‑of‑pocket cost and add it as a negative line item. This calculator keeps the model simple and uses the employer premium contribution as the benefit value, which is a conservative and widely used baseline.
Vesting and “Earned” Benefits
Some benefits are not fully earned immediately. Retirement match can have vesting schedules (for example, 0% vested in year 1, 50% in year 2, 100% in year 3). Equity grants and some bonuses also vest over time and can be forfeited if you leave. If your expected tenure is short, the effective value of these benefits is lower. When comparing offers, ask whether the 401(k) match is vested immediately, and if not, adjust the match value downward to reflect the probability you will stay through vesting milestones.
Taxes and After‑Tax Reality
Total compensation is not the same as take‑home pay. Bonus is often taxed differently through withholding and may push you into a higher marginal bracket. Employer health contributions are typically pre‑tax benefits (not taxable to you), while some fringe benefits may be taxable. This calculator focuses on pre‑tax employer contributions because it is meant for apples‑to‑apples offer comparison, but if you are deciding whether you can afford an offer, run an after‑tax budget as well.
Limitations and Assumptions
This calculator is a planning tool. It assumes:
- Bonus is paid at target (you can adjust down if you want a conservative estimate).
- Retirement match is earned based on your chosen contribution rate and is not subject to vesting cliffs.
- Health premium contribution is treated as a dollar benefit; plan design and deductibles are not modeled.
- PTO value is an “equivalent” and not guaranteed; some roles have workloads that prevent taking full PTO.
For a deeper offer comparison, consider adding after‑tax modeling, equity risk, commuting cost, and work‑life factors. Still, for most people, the structured view here is enough to avoid being misled by base salary alone.