How to Calculate the Real Yearly and Hourly Value of a Job Offer

To calculate what a job offer is really worth, convert it into a total yearly value: base salary, plus bonus, plus the value of employer-paid benefits and time off, plus equity if there is any, minus extra costs you will bear. Then divide by the hours you will really work. The offer with the biggest salary is not always the one with the highest total.

Step 1: Start with base pay and guaranteed cash

List the base salary and any guaranteed extras, such as a signing bonus. Keep one-off payments separate from yearly ones, because a signing bonus helps only in the first year and can inflate how an offer looks.

Step 2: Add variable pay realistically

Bonuses and commission are often described as targets. Ask how often the target is typically met, and weigh it below the base. Compare offers using what you expect, not the maximum.

Step 3: Put a value on benefits

Include the employer's share of health insurance, the retirement contribution match, paid time off and any allowances. A package with a lower salary but full coverage and a good match can be worth more than a higher salary where you pay a lot for cover yourself. Count only benefits you would genuinely use.

Step 4: Treat equity with caution

Equity may be worth a lot or nothing. Look at the vesting schedule, any cliff, the company's stage and how the grant is taxed. Many people value equity at a discount, or only count what has vested. Compare offers over several years, not just the first one, since vesting is often spread out.

Step 5: Count time and costs

Commuting time and cost, expected hours, remote work, and paid leave all change the real value of an offer. Divide total compensation by realistic hours worked to get an hourly figure you can compare directly.

Step 6: Weigh what numbers cannot capture

Growth, the quality of the manager, the learning you will get and the stability of the company matter, and they are hard to price. Decide how much weight each deserves, and be honest about what matters most to you right now.

How can I do the maths quickly?

Enter your offers into the Rezumz Job Offer Comparison Calculator. It puts them side by side with bonus, equity, benefits and time off, and shows what each is worth per year and per hour. It runs in your browser with no account, and every figure is yours to change.