How to compare two job offers on total value

An offer letter leads with the salary, so that's the number people compare. But two offers with the same salary can be thousands of dollars apart once you count the bonus, the retirement match, what you pay for health insurance, your time off and the drive to work. Here's how to put every piece on one line.

Why isn't salary enough to compare job offers?

Because a big share of pay never shows up in it. In June 2026, benefits made up 30.0% of what private employers spent on their workers: $14.07 of $46.89 an hour, according to the Bureau of Labor Statistics. Not all of that reaches you in a form you can compare (part is the employer's share of payroll taxes), but the parts that differ between offers can easily outweigh a few thousand dollars of salary.

What goes into a job offer's total value?

A few points that trip people up:

• The match depends on you. "100% of the first 4%" only pays if you put in 4%. "50% of up to 6%" needs 6%. The 2026 limit on your own 401(k) contributions is $24,500, so most people can reach any match (IRS).
• Vesting decides whether you keep the match. Your own contributions are always 100% yours. Employer money can follow a schedule, such as nothing until three years of service and then 100% (a "cliff"), or 20% after two years rising to 100% after six (IRS).
• Health costs are more than the premium. The average worker paid $1,440 a year toward single coverage and $6,850 toward family coverage in 2025, and the average deductible for single coverage was $1,886 (KFF). Get the actual numbers for the plan you'd pick.

A worked example: new job vs. counteroffer

You earn $63,000 now. A new employer offers $72,000. Your manager counters with $68,000 to keep you. Here are both offers in full:

Now turn each line into dollars for a year. The bonus is counted at 50% of target because it isn't guaranteed. Health costs are the premiums plus half the deductible. Driving is priced at the IRS business rate of 72.5 cents a mile, a fair stand-in for what a mile of driving really costs, though commuting itself isn't deductible.

The new job comes out ahead by $4,246, a little more than the salary gap: its bonus and bigger match outweigh its higher health and commute costs. Now count the time.

What is each offer worth per hour?

With 10 paid holidays, the new job's 15 days of PTO leave 235 working days (1,880 hours); the counteroffer's 20 days leave 230 (1,840 hours). The 5 extra days off at the new job's day rate are worth about $1,385. Add commute time, 141 hours a year against 57.5, and divide:

Per hour of your life, the two offers are nearly identical: $35.30 against $35.36. And if you might leave the new job before its three-year cliff, its match never becomes yours and the value drops to $33.87 an hour. The extra $4,000 of salary is mostly paying for more office days and fewer days off.

That doesn't make the counteroffer the right choice. It means the decision rests on the things that aren't in the table: the work, the people, where each job leads. Our true hourly wage guide goes deeper on hidden hours, and if one offer is a 1099 contract, adjust it first with our W-2 vs. 1099 comparison.

Counteroffer vs. new job: what else to weigh

• Why now? If the raise only appeared when you had a written offer, ask what will drive your next one.
• The reasons you looked. If you started looking because of the role, the manager or the hours, more money doesn't change those.
• Growth, not just year one. A higher base compounds with every future raise. Our switchers vs. stayers guide shows what pay data says about moving.
• Get it in writing. A counteroffer should state the new salary and its start date, just like an outside offer.

A quick checklist before you decide

1. Ask each employer for the benefits summary, the plan premiums and the 401(k) vesting schedule.
2. Ask when health coverage and the match start. A waiting period is a cost in the first year.
3. Check what you'd give up by leaving: unvested match, a bonus paid after your exit date, unused PTO that may not be paid out.
4. Count office days and the real commute, not the best-case drive.
5. Put both offers through the same table, then divide by hours.

Assumptions: the figures shown, 260 weekdays a year with 10 paid holidays, 8-hour days, the target bonus counted at 50%, half the deductible used, driving at 72.5 cents a mile, and taxes left out. Benefit averages are from BLS (June 2026) and KFF (2025). General information, not financial or tax advice.

Common questions

What should I compare besides salary in a job offer?

Bonus (and whether it's guaranteed), the 401(k) match and its vesting schedule, what you pay for health insurance including the deductible, paid time off, the commute and the number of office days. Turn each into dollars or hours so the offers sit on one line.

How do I value a 401(k) match?

Multiply your salary by the share the employer matches, and only count it if you'll contribute enough to get it all. Check the vesting schedule: money you put in is always yours, but employer contributions can take years to vest. The 2026 limit on your own contributions is $24,500 (IRS).

Should I take a counteroffer or the new job?

Compare them like any two offers, on total value and per hour. Then ask why the raise wasn't offered before, and whether the things that made you look, beyond pay, will change. If they won't, a higher number may only delay the move.

How do I compare health insurance between two offers?

Add up what you'd pay in premiums for the year, then add a realistic share of the deductible based on how much care you usually use. For context, the average worker paid $1,440 a year toward single coverage in 2025 (KFF).

Is a sign-on bonus part of total value?

Count it in the first year only, and read the fine print: many must be paid back if you leave within a set period. For a multi-year comparison, spread it over the years you expect to stay.

This article is general education, not personal financial advice. Figures in worked examples are calculated from the assumptions stated with them and are not forecasts.