You have two offers on the table. One pays $130,000 base in San Francisco, the other pays $115,000 base in Denver. Which is better? If you only compare base salaries, you will miss the real answer. To evaluate offers accurately, you need to factor in equity, bonuses, cost of living, and benefits — and our counter offer email generator can help you run the numbers.

Why Base Salary Is Misleading

Base salary is the number everyone fixates on because it is simple and certain. But total compensation can differ wildly from base alone. A $120,000 base with a $30,000 equity grant and $20,000 signing bonus is actually worth more in year one than a $140,000 base with no additional comp. Always look at the full package before making a decision.

How to Value Equity and Stock Options

Equity is the trickiest component to compare. For public companies with RSUs, the value is straightforward: the number of shares times the current market price, divided by the vesting schedule. For private companies and startups with stock options, you need to estimate the company's potential exit value and factor in dilution. A common rule of thumb: divide the option grant by the number of outstanding shares and multiply by your estimated exit valuation at 5–7 years.

Signing Bonuses vs Relocation Packages

A $30,000 signing bonus sounds great, but it is a one-time payment. When comparing offers, spread the signing bonus across your expected tenure — $30,000 over 3 years is $10,000 per year. Relocation packages, on the other hand, cover real costs and are usually tax-advantaged. Do not let a large signing bonus distract you from a lower recurring total comp.

Remote Work and Cost of Living

A fully remote role at $120,000 in a low-cost area like Austin or Atlanta can provide a better lifestyle than $150,000 in New York City or San Francisco. Use a cost-of-living calculator to normalize each offer. A 15% cost-of-living difference effectively cancels out a 15% salary difference.

Health Insurance and Retirement Matching

A 5% 401(k) match on a $130,000 salary is $6,500 per year in free money. Comprehensive health insurance can be worth $10,000–$20,000 annually compared to a high-deductible plan with expensive premiums. When comparing offers, add 20–30% of base salary for benefits at large tech companies and 10–15% at smaller firms.

The 5-Year Total Comp Method

The most accurate way to compare offers is to project total compensation over 5 years. Include base salary (with estimated 3–5% annual raises), annual bonuses, equity vesting schedules, signing bonuses amortized, and recurring benefit values. This gives you a true apples-to-apples comparison that accounts for all the variables.

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