Benefits Package Total Compensation Calculator
Understand your total compensation, not just your salary
When you compare job offers, it is easy to focus on the base salary and overlook benefits that can be worth thousands of dollars per year. This calculator helps you estimate total compensation by combining base pay, bonus, employer retirement contributions, health insurance support, and the value of paid time off (PTO).
Use it when you are choosing between offers, preparing for a raise discussion, or evaluating whether your current benefits package is competitive. The goal is not tax-level precision, but a clear, apples-to-apples view of what an employer is really paying you each year.
What this total compensation calculator includes
The calculator starts with your annual base salary and then adds common employer-paid benefits:
- Base salary – your guaranteed annual pay before bonuses or overtime.
- Bonus target – a percentage of base pay you might earn if performance goals are met.
- Employer 401(k) match – the amount your employer contributes to your retirement account, up to a cap.
- Employer health premium contribution – how much the employer pays toward your health insurance premiums each month.
- PTO value (optional) – an estimate of what your paid days off are worth, based on your salary and working days per year.
Combining these gives you an estimated total compensation figure you can compare across roles and companies.
How the calculator estimates each component
At a high level, the calculator uses these formulas:
- Annual bonus estimate = Base salary × Bonus target %
- Employer 401(k) match = Base salary × min(Your contribution %, Match cap %)
- Annual health contribution = Monthly employer health contribution × 12
- PTO value = (Base salary ÷ Working days per year) × PTO days
- Total compensation = Base salary + Annual bonus + Employer 401(k) match + Annual health contribution + PTO value
MathML version of the total compensation formula
The complete total compensation formula can also be written as:
Where:
- T = total compensation
- S = base salary
- b = bonus target (as a decimal, e.g., 0.10 for 10%)
- c = your 401(k) contribution rate (decimal)
- m = employer 401(k) match cap (decimal)
- H = employer monthly health premium contribution
- P = paid time off days per year
- W = working days per year
Worked example: comparing two job offers
Imagine you have two offers and want to know which has higher total compensation.
Offer A
- Base salary: $100,000
- Bonus target: 10%
- Employer 401(k) match cap: 4% (you contribute at least 4%)
- Employer health contribution: $400/month
- PTO: 20 days; working days per year: 260
Calculations:
- Bonus: $100,000 × 10% = $10,000
- 401(k) match: $100,000 × 4% = $4,000
- Health: $400 × 12 = $4,800
- PTO value: ($100,000 ÷ 260) × 20 ≈ $7,692
- Total compensation A ≈ $100,000 + $10,000 + $4,000 + $4,800 + $7,692 = $126,492
Offer B
- Base salary: $110,000
- Bonus target: 5%
- Employer 401(k) match cap: 2%
- Employer health contribution: $200/month
- PTO: 10 days; working days per year: 260
Calculations:
- Bonus: $110,000 × 5% = $5,500
- 401(k) match: $110,000 × 2% = $2,200
- Health: $200 × 12 = $2,400
- PTO value: ($110,000 ÷ 260) × 10 ≈ $4,231
- Total compensation B ≈ $110,000 + $5,500 + $2,200 + $2,400 + $4,231 = $124,331
Even though Offer B has a higher salary, Offer A has slightly higher total compensation once benefits and PTO are included. This is the kind of trade-off the calculator is designed to make visible.
How to interpret and compare your results
After you enter numbers for each field, look at the breakdown as well as the total. Helpful ways to use the results:
- Compare the total compensation number across offers, not just the salary.
- Notice which elements drive the difference: a richer 401(k) match, better health coverage, or more PTO.
- Decide where you are willing to trade off. For example, you may accept a slightly lower total compensation for a role with better career growth or work–life balance.
Component comparison table
Use the table below as a mental checklist when you compare two offers side by side with the calculator.
| Component | What to enter | How it affects total compensation |
|---|---|---|
| Base salary | Annual gross salary | Largest driver for most roles; also used to value bonus and PTO. |
| Bonus target % | Target bonus as a percentage of base pay | Higher percentage can add meaningful upside, especially in sales and leadership roles. |
| 401(k) match cap % | Maximum employer match as a percentage of your salary | Acts like extra salary paid into your retirement account, assuming you contribute enough to receive the full match. |
| Your contribution rate % | Percentage of salary you plan to contribute | Determines how much of the match you actually receive (up to the cap). |
| Health contribution | Employer-paid monthly premium amount | Reduces your out-of-pocket insurance costs; higher employer contributions increase total comp. |
| PTO days | Number of paid vacation/holiday days | More PTO increases the value of your time off and can effectively raise your hourly rate. |
Assumptions and limitations
This calculator is designed to be simple and transparent rather than a full financial planning tool. Keep these assumptions in mind:
- 401(k) match – It assumes you contribute at least up to the employer match cap. If you contribute less, your actual employer match will be lower.
- Health benefits – Only the employer-paid share of health insurance premiums is included. It does not estimate the value of plan design differences (deductibles, copays, networks).
- PTO value – PTO is valued using base salary divided by working days per year. It treats all working days as equal and does not account for overtime, shift differentials, or billable hours.
- Bonuses and variable pay – The bonus figure is a target, not a guarantee. Actual payouts may be higher or lower depending on performance and company results.
- Taxes and other benefits – The calculator works in gross dollars and does not model income taxes, payroll taxes, or pre-tax vs. post-tax treatment. It also excludes equity, stock options, ESPP, profit sharing, life and disability insurance, stipends, and other perks.
Because of these limits, you should use the results as a structured comparison tool rather than a precise prediction of what will hit your bank account.
Practical tips for using this calculator
- Run the calculator separately for each offer and note the total compensation number and component breakdown.
- Pay attention to long-term benefits like retirement contributions and health coverage, not just cash today.
- If an offer includes equity or other major benefits, estimate their annual value separately and add them to the total for a more complete picture.
- Use your findings to ask better questions in negotiations (for example, requesting a higher match, a signing bonus, or an extra week of PTO instead of only asking for salary.)
Common questions
Does this calculator include equity, stock options, or RSUs?
No. Equity and stock-based compensation vary widely and are not included here. If your offer includes equity, you can estimate an annual value separately and add it to the total compensation output.
How is PTO value calculated in practice?
The PTO value is based on your base salary divided by the approximate number of working days per year. For example, with a $90,000 salary and 260 working days, each day is worth about $346. If you have 15 days of PTO, the estimated PTO value is roughly $5,190.
Can I use this for hourly roles?
You can, but you will first need to convert your hourly pay into an annual salary (hourly rate × hours per week × weeks per year). Then enter that figure as your base salary.
Is the employer 401(k) match free money?
In many cases, yes: it is additional compensation you receive only if you contribute to the plan. It usually vests over time and is subject to plan rules, so check your specific offer paperwork.
Why might a lower-salary offer still be better?
An offer with a slightly lower base salary can still win on total compensation if it has a strong bonus plan, a generous 401(k) match, richer health benefits, or significantly more PTO. That is exactly what this tool helps you quantify.
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.