calculationType
Total Compensation Calculator
Value your complete compensation package including benefits, bonuses, and other perks beyond base salary.
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Try an Example
Pick a scenario to see how the calculator works, then adjust the values
Software Engineer
Convert a $120,000 annual software engineer salary to hourly rate with standard benefits
Key values: $120,000/yr · 8 hr/day · 15 PTO days · 10 holidays
Teacher
Convert a $55,000 annual teacher salary to hourly rate with school schedule
Key values: $55,000/yr · 7.5 hr/day · 10 PTO days · 15 holidays
Hourly to Salary
Convert a $25/hour wage to see the equivalent annual salary
Key values: $25/hr · 8 hr/day · 5 days/week · 10 PTO days
Components of Total Compensation
| Component | Typical range | Notes |
|---|---|---|
| Base salary | 60–80% of TC | Guaranteed, paid regularly |
| Annual bonus | 5–30% of base | Performance-dependent, not guaranteed |
| Equity (RSU/options) | Varies widely | Vesting schedule (typically 4 years) |
| Health insurance | $6,000–$20,000/yr | Employer contribution (often 70–80%) |
| Retirement match | 3–6% of salary | 401(k) employer match |
| PTO value | 4–8% of salary | Paid days off (15–25 days/year) |
Valuing Benefits
To compare offers accurately, estimate the dollar value of each benefit:
Comparing Two Offers
Example: Offer A: $95K base, no bonus, employer pays $800/month for health, 3% 401(k) match, 15 days PTO. Offer B: $85K base, 15% target bonus, employer pays $500/month for health, 6% match, 25 days PTO.
- Offer A TC: $95K + $9.6K health + $2.85K match + $5.48K PTO = $112.9K
- Offer B TC: $85K + $12.75K bonus + $6K health + $5.1K match + $8.17K PTO = $117.0K
Offer B's lower base salary is more than offset by the bonus, retirement match, and extra PTO.
Understanding Equity Compensation
- RSUs (Restricted Stock Units): Shares granted that vest over time. Value = share price × number of shares vested. Most common at large tech companies.
- Stock options: Right to buy shares at a set strike price. Value = (market price − strike price) × shares. Can be worth $0 if the company value declines below the strike.
- Typical vesting: 4-year schedule with a 1-year cliff (nothing vests in year 1, then 25% at the cliff, remainder monthly or quarterly).
Frequently Asked Questions
What is total compensation and how does it differ from base salary?
Total compensation includes everything your employer provides: base salary, bonuses, equity (RSUs or stock options), health insurance, retirement matching, PTO, and other perks. Base salary is typically 60-80% of total compensation. A $90,000 salary with full benefits might be worth $115,000-$130,000 in total compensation.
How do I calculate the dollar value of my benefits?
For health insurance, check your employer contribution on your benefits summary or compare to marketplace plans. For 401(k) matching, multiply your salary by the match percentage. For PTO, divide your annual salary by 260 working days and multiply by PTO days: . Add these to your base salary for total compensation.
Should I accept a lower salary with better benefits?
It depends on your personal situation. Calculate total compensation for both offers. Better health insurance may be worth $5,000-$15,000 annually. A 6% 401(k) match on $80,000 adds \\$4{,}800/\text{year}. Weigh your health needs, retirement goals, and cash flow requirements against the salary difference.
How do RSUs and stock options factor into total compensation?
RSUs have a clear value: (typically 4 years). Stock options are worth the difference between market price and strike price, but can be worth zero if the stock falls. RSUs are more predictable; options have higher potential but more risk.
What percentage of total compensation do benefits typically represent?
Benefits typically add 20-40% on top of base salary. Health insurance contributes $6,000-$20,000, retirement matching 3-6% of salary, PTO 4-8% of salary, and other perks (life insurance, disability, education benefits) another 2-5%. The exact percentage varies by employer and industry.
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