How the comparison is calculated
For each offer the calculator builds a single yearly number and then divides it by the time you actually give the job.
- Total annual compensation = base + expected bonus + equity vesting per year + employer 401(k) match (match % multiplied by base) − the health premiums you pay (monthly premium × 12).
- Paid hours = (260 weekdays − PTO and holiday days) × hours per day.
- Commute hours = on-site days × commute minutes ÷ 60, where on-site days shrink with every remote day per week.
- Per hour worked divides total compensation by paid hours. Per hour including commute divides by paid hours plus commute hours, which is the figure that shows what your time is worth.
Example: a $100,000 base with a $10,000 bonus, a 4% match, $200 a month in premiums, 15 PTO days and a 60 minute commute works out to $111,600 in total compensation, about $56.94 per paid hour and $50.61 per hour once 245 commute hours are counted.
Worked example
Offer A pays a $95,000 base with a $5,000 bonus, a 4% 401(k) match and $150 a month in health premiums, with 15 days of PTO and a 60 minute round-trip commute every workday. Offer B pays $90,000 with no bonus, a 3% match, $100 a month in premiums, 20 days of PTO, the same 60 minute commute and 4 remote days a week.
Offer A wins on total annual compensation: $102,000 against $91,500. But Offer A takes 1,960 paid hours plus 245 commute hours, while Offer B takes 1,920 paid hours and only 48 commute hours. Per hour including commute, Offer B comes out slightly ahead at $46.49 against $46.26. Once time is counted the two offers are almost level, and the extra $10,500 at Offer A is paid for with more of your hours.
Benefits that quietly change the answer
Two offers with the same base can be thousands of dollars apart once you look at the rest of the package.
- 401(k) match. Matching is free money only if you contribute enough to receive it. A 4% match on a $100,000 salary is worth $4,000 a year.
- Health premiums. A plan that costs you $450 a month instead of $150 is a $3,600 yearly difference before deductibles are considered.
- Equity. Enter only what you expect to vest in a year and be realistic. Private company shares may never be sellable, so many people enter a discounted value or zero.
- Bonus. Use the amount you would honestly expect, not the maximum target.
Putting a price on time
Commuting and rigid schedules are real costs even though they never appear on an offer letter. An hour-long daily commute over 245 days is 245 unpaid hours, equal to more than six full work weeks. Four remote days a week can cut that to a fifth.
Use the per-hour figure as a tie-breaker, not a verdict. Also weigh career growth, team quality, job security, location and the cost of getting to work (fuel, parking, transit passes), which are not included here. Totals are before tax, so pair the result with our take-home pay estimator to see what lands in your account.
Frequently asked questions
Should I include equity in the comparison?
Only the portion you expect to vest each year, and only at a value you would actually trust. For a public company, use the share price times shares vesting. For a startup, many people use a heavily discounted value or leave it at zero.
Is the total pre-tax or after-tax?
Pre-tax. Different offers may sit in different states and tax situations, so run each salary through the take-home pay estimator if you want to compare net income.
Why does the 401(k) match use a percent of base?
Most employers state the match as a percentage of salary, up to a cap. Enter the percentage you would fully receive given the contribution you plan to make.
How is commute time counted?
Commute minutes are per on-site day, round trip. Remote days per week reduce the number of on-site days proportionally, so 3 remote days leaves 2 of 5 days commuting.
Does the calculator tell me which job to take?
No. It puts numbers on pay and time so you can compare like with like. Growth, stability, culture and personal priorities matter just as much.