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Annual Total Compensation
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Annualized Equity
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% Above Base
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Calculate the true total value of a job offer including salary, bonus, equity, and benefits.
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Annualized Equity
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% Above Base
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Add base salary, expected bonus, annualized equity (total grant divided by vesting years), and the annual value of benefits together for a full picture of a job offer's total worth.
Total Comp = Base Salary + Bonus + (Equity Grant รท Vesting Years) + Benefits Value
Comparing two job offers by base salary alone can miss significant differences in total value. A role with a lower base but a meaningful equity grant and strong benefits can be worth substantially more than a higher-base role with minimal extras, particularly at companies (especially tech and startups) that lean heavily on equity as part of compensation strategy.
Equity grants are typically awarded as a lump sum that vests over a period, commonly four years, rather than being received all at once. Dividing the total grant value by the vesting period gives a rough annualized figure comparable to salary and bonus, though it's important to remember this value is not guaranteed and depends on the company's stock performance (or, for private companies, a future liquidity event).
Employer 401(k) matching, health insurance premium subsidies, HSA contributions, disability and life insurance, and other perks (gym stipends, commuter benefits) all have real dollar value even though they don't show up on a paycheck. Estimating this total and including it in a compensation comparison prevents undervaluing an offer with strong benefits relative to one that's cash-heavy but benefits-light.
Unlike salary and cash bonus, equity value is inherently uncertain, especially at private companies where shares may never become liquid, or at public companies where stock price fluctuates significantly. When comparing offers, it's worth mentally discounting equity value for this uncertainty, more heavily for early-stage private companies than for established public companies with liquid stock.
Total compensation includes base salary, annual bonus, the annualized value of equity grants, and the dollar value of benefits like employer 401(k) match, health insurance subsidy, and other perks, giving a fuller picture than base salary alone.
Equity is typically valued at its fair market value at grant, divided by the vesting period to get an annualized figure, though actual realized value depends heavily on company performance and, for private companies, an eventual liquidity event that may never happen.
Base salary alone can be misleading when comparing offers, since two similar base salaries can represent very different total value once bonus, equity, and benefits are included. A lower base salary with strong equity or benefits can outperform a higher base salary with minimal extras.
Calculate RSU vesting value with the RSU Vesting Calculator, or check your take-home pay with the Paycheck Calculator.
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